Research On Including Business Income In The Comprehensive Income Of Individual Income Tax

Fairness is the eternal pursuit of human beings,and the fairness of income distribution is one of the most realistic and most concerned by the masses of people.Individual income tax,as the tax closely related to individual income,should play a greater role in adjusting income and promoting equity.In 2018,the individual income tax reform initially established a comprehensive and classified tax system,achieving a qualitative breakthrough in the transformation from a classified tax system to a comprehensive and classified tax system,and enhancing the redistributive role of individual income tax.However,many studies also show that the income adjustment function of individual income tax is still relatively limited.The14 th Five-Year Plan calls for "improving the personal income tax system and expanding the scope of comprehensive collection",which points the way to further increase the role of personal income tax in redistributing income.Therefore,how to expand the scope of comprehensive income is the key to better play the role of individual income tax redistribution.The business income has the characteristics of labor and regular,and is the closest to the comprehensive income,so it is the most suitable target for the expansion of comprehensive income in theory.Based on the definition or discrimination of related concepts of business income,this paper sorts out the current policy situation and income situation of business income,and concludes the fairness problems of business income in the taxation mode,collection method and collection practice.Based on the summary of the current situation and problems of business income,through systematic analysis,it is concluded that the reform of incorporating business income into the scope of comprehensive collection can improve the taxation mode of individual income tax and improve the redistribution effect,while the negative effect of new problems it may bring is relatively small and can be solved.So,choose business income as the next step of comprehensive income enlarge circumference of object has the necessity.On the basis of the theoretical analysis of the necessity of the reform,the empirical study proves that the reform has the function of promoting redistribution,and the international comparison and reference illustrate the generality and priority of the reform in the world.Based on necessity analysis,empirical research and international reference,the basic conclusion is drawn that business income should be included into the comprehensive income of individual income tax as soon as possible,and new problems may be solved.Looking into the future,the inclusion of management income in the scope of comprehensive income tax is only the beginning of comprehensive income expansion.It is suggested that continuous reform should be carried out in stages to improve our country’s comprehensive and classification combination of taxation model.