The Research On U.S. Personal Income Tax System Optimization

Economic globalization has made countries to a convergence of personal incometax reform trend. U.S. Personal Income After nearly a century of history, after severalmajor reforms, we can say that it ’s personal income tax system have been moreperfect, while in practice to adjust income distribution has accumulated a wealth ofexperience. The characteristics of the recent "fiscal cliff" crisis and post-crisis era,making the U.S. personal income tax system must be optimized into a new round ofreforms, in order to adapt to the needs of the entire American society. Therefore, atthis time the U.S. personal income tax restructuring optimization ideas, to some extentcan individual income tax on behalf of the United States, and even the direction ofthe world’s personal income tax system reform. In this paper, the post-crisis era ofAmerican income distribution based on the Verge, innovative departure from thehistorical evolution of the transverse and longitudinal sections of combining theperspective of the overall U.S. personal income tax system optimization studies, andthen summed up the personal income tax system internationally optimized basic trend.This paper first proposed the concept of tax optimization, and describes the fourbasic theoretical tax optimization, tax optimization theory research is based on themarket mechanism, the moderate government intervention to get the state tax systemto optimize the importance and reality, consider the, both tax revenue optimizationprocess efficiency target equity objectives, and pay tax on the economic analysis ofthe behavior of the main issues in the decision-making stimulus conditions withoutadequate information.Core content of this article is the U.S. personal income tax system optimization,including specific elements of the tax system were cross-sectional analysis andlongitudinal analysis of the historical evolution of these two aspects. Firstly, thehistorical evolution of the U.S. personal income tax of ten historical periods wereanalyzed, while doing performance summary segmented from the vertical angle. U.S.Personal Income Tax Law by studying the origin and changes of course, can besummed up the characteristics of the development of the U.S. personal income tax,and trends in the United States are summarized toward the development of personal income tax system from a longitudinal perspective.In the U.S. progressive personal income tax system optimization analysis, thispaper we analyze the emergence phase of the U.S. personal income tax policyobjectives are: fair mainly take into account efficiency. That means building theprimary consideration is the principle of the personal income tax system fair. Theprogressive nature of the most important criteria to evaluate the fairness of the taxsystem. And any system problems can be attributed to two aspects: First, the totalamount, the second is the structure. First, the widening income gap in the UnitedStates and the Gini coefficient variation as a breakthrough, the United States obtainedthe overall progressivity of personal income tax has been enhanced conclusion. Fromthe analysis of the past10years that the United States could, if not strictlyprogressive taxation of American society, will be a very unfair system. Even how theU.S. economy is developed, how amazing the national wealth, the tax system willrequire substantial redistribution of personal income tax is duty-bound. United Statesto establish a nationwide perfect secondary distribution mechanism. The size of thesecondary allocation to the personal income tax as the main account is usually20%-30%GDP total. America’s pre-tax Gini coefficient after the adjustments of personalincome tax, tax Hou Jini coefficient generally on the decline, which greatlyimproved the level of final income distribution of equal population, which representsthe overall progressivity of the personal income tax system in the United States.Secondly, apart from the overall study of the personal income tax progressivity, italso studied the structure of the optimization problem progressive personal income taxsystem in the United States. We focus on tax progressivity different units, resultingin different types of progressive, progressive income in different regions and differentsectors of the progressive progressive issues such as the structure, the structure of theAmerican progressive deletions draw conclusions. Finally, the U.S. personal incometax system progressive optimization done predicted trend: in the future for a longperiod of time, the U.S. government will continue to strengthen the personal incometax system is progressive. Overall progressive and progressive structure whileplanning go hand in hand. First, to improve the social distribution of personal incometax regulation efforts. Meanwhile progressive structural design, both structural taxcuts, but also structural taxes. For progressive structure of different income levels,resulting in different classes, different tax units, in different regions, fine design,making the total U.S. progressive personal income tax system on compliance, reasonable structure.In the U.S. personal income tax system model optimization, this paper lists threecommon international tax model, and the consolidated income tax model, patternclassification tax advantages and disadvantages of mixed income model for a detailedanalysis. While the existing U.S. personal income tax system integratedcomprehensive performance evaluation model. Combining the two tax modelreconstruction theory: the single tax theory and the theory of dual income tax model,the trend of simplifying the personal income tax system in the United States foranalysis. U.S. personal income tax system optimization has been the existence of twodistinct ideas: either the existing tax system repair, rebuild or tear down the existingtax system. In the Tax practice, the tax system repair accounted for the mainstream,but the United States regardless of theory and practice, there have been tax renewaltheory and sound. Although the United States has been implementing acomprehensive collection of the tax model, but theorists in recent years there havebeen two new tax model theory is often discussed, and there are many scholars havesuggested that the reform of the existing tax model is a single mode or dual incometax mode. Although these reform initiatives did not really pursue personal income taxreform in the United States, but these two new tax model theory, in terms of theoryand practice, the impact of the U.S. tax model is very large. U.S. personal income taxreform on a single reference is very meaningful. Learn the theory of a single taxreform to simplify the tax system can be guaranteed under the premise of the total taxrevenue, a better solution to America’s tax burden is too heavy, complicated taxsystem, tax collection and compliance costs and high cost, to a certain extent,improve the economy efficiency, and therefore subject to U.S. academia andgovernment certainly learn. Meanwhile, the U.S. personal income tax system to "dual " and the proportional tax rate on capital gains, to implement a progressive taxrate on labor income, this aspect of simplifying the tax system, while also taking intoaccount the efficiency and fairness. While the personal capital income tax rate isequal to the company tax rate designed by imputation or other methods to eliminateeconomic double taxation. Levied on capital gains through lower taxes to stimulateeconomic growth, but also can reduce the effects of inflation. Finally, our personalincome tax system for the United States made a prediction model to optimize thetrend: the pursuit of a national tax system in addition to the two major principles offairness and efficiency, simple and convenient but also one of the important goals. First, the U.S. consolidated income tax model diehard, it is precisely the most typicalrepresentative of the complicated tax system. It is made difficult to readhieroglyphics as complicated federal tax laws and implementing rules. Thiscomplexity leads to progressive taxation are two visible transaction costs: the taxdepartment more administrative costs, compliance costs taxpayers more, and aninvisible social costs: loss of efficiency. Only three social cost that is five or six onehundred billion U.S. dollars per year is huge. U.S. government generally complexproblem there is a consensus for reform of the tax system, that would like a smootherevolution of the tax system, but there are many different specific programs. So,whether it is a single tax theory, or dual tax theory, the theoretical reason why theUnited States has a great community and government markets, mainly the UnitedStates caused by the complicated tax laws. Therefore, regardless of the single tax anddual tax in the United States could eventually be fully implemented to simplify the taxsystem represented by these two theories, convenience, efficiency, impact on thetraditional American principles of integrated tax model is very large. The reformprocess of the United States personal income tax system has proved to simplify thetax system is an irreversible historical trend and social needs.In the U.S. personal income tax system to optimize the tax base, we mainlyfocus on U.S. personal income tax bases involves pattern analysis and study the scopeof taxable income, the tax base size, expense deduction, indexation and so on. Inexamining the U.S. personal income tax base, we need to figure out the U.S. personalincome tax base is very important to optimize the process of two mechanisms: one isthe relationship between the tax bases of inflation to solve, namely the tax indexationmechanism; another is resolved relationship with net proceeds of the tax base, theelastic expense deduction mechanism. At the same time research tax bases of threespecial mechanisms: selective mechanism to maximize net of minimum tax paymentmechanism, waiver disappear mechanism. U.S. personal income tax system has a lotof experience in the tax base optimization worth learning, including: the U.S.personal income tax personal broad exemptions, standard deduction, the tax basegrade and individual labor income tax credit, have handled the implementation ofindexation, eliminate the impact of inflation on the tax base. Meanwhile U.S.Individual Income Tax expense deduction and credit projects elasticity is veryuser-friendly, and fully reflects the amount of energy taxation principle. U.S. personalincome tax law provides a right to taxpayers both active choice, such as selective mechanisms to maximize the deduction; simultaneously gave the government theright to choose taxation, such as the minimum tax payment mechanism. Flexibleexpense deduction system, there are many institutional innovation. For example, forhigh-income earners, to cancel his enjoyment of the amount of relief, launched the "waiver reduction mechanism." The real regulation fair, truly reflects the elastictaxation. Finally, we have optimized the U.S. personal income tax base madeforecasting trends: U.S. personal income tax base settings, not the blind pursuit of"wide tax base," but the real pursuit of " fine tax base." Set the width of the tax baseis wide and should narrow it narrower. First of all the personal income are included inthe scope of the collection, so that the tax base as broad as possible, throughscientific indexation mechanisms and flexible expense deduction mechanisms forpersonalized adjustment, net of maximizing mechanism by choosing to waivemitigation mechanism, alternative minimum tax mechanism for correction, for truly"pure income" tax. Therefore, the " fine bases ", U.S. personal income tax base is thefuture direction of optimization.In the U.S. personal income tax rate structure optimization, firstly on the U.S.personal income tax rate structure evolved a brief review of the analysis, then thetrend of the U.S. personal income tax rate structure before and after the crisis, thenew rate structure analysis showed a lower initial rate, the highest marginal tax ratefluctuations and deceleration rate structure of the specific reasons. Analysis of theUnited States in four different designs at different rates of tax units, theimplementation of specific practices tax indexation adjustments. While at the sametime the rate of change in the trend of the U.S. capital gains comparative analysis.U.S. personal income summed up the current rate structure and characteristics: theimplementation of the U.S. personal income tax rate is one dollar progressive mode,the rate of scientific and reasonable structure design, the tax rate is not equalprogressive progressive route, while the rate of tax applicable to the table is adifferent level from, so even if the same taxable income, but the tax level from theinconsistent tax liability is not the same. The rate specified in the table applies to adifferent flat tax rates are different. But also the implementation of indexation ratestructure adjustment, according to the inflation rate of the tax changes in the projectwith the price indexation adjustments to eliminate the effects of inflation on the actualtax liability.U.S. personal income tax system is the core element of the U.S. personal income tax system, but also give full play to its functions, including: tax system has been theU.S. government ’s main lever to adjust economic activity, is an important means ofincome redistribution U.S. regulation. It provides for a progressive reduction route,regulating moderate and reasonable restrictions on the more modest increase inincome, better progressive effect, to better reflect the individual income tax rates, taxburdens class role. Rate structure should be adapted to the needs of themacroeconomic evolution of the American form of development from the federalpersonal income tax rate structure point of view, basically revolves around revenueassurance, promote economic development and maintain a neutral tax reform andimproving collection efficiency, the rate structure often in the United States amongchanges, not changes in marginal tax rates, standard deduction or progression alsooften adjusted, this flexible approach helps form tax policy to meet the needs ofmacroeconomic development. U.S. personal income tax, depending on the identityof a different level from the provisions and tax rates. Depending on the taxpayer, thetaxpayer comprehensive consideration of differences in ability to pay, subject todifferent tax table reflects horizontal equity taxes. America’s tax system, there aresome problems. The first is the poor stability of the rate structure, changes frequently,taxpayers expected this lack of certainty. Second, the U.S. progressive rate structure,the regulation did not fully play the role assigned, the proportion of the capital gainstax rate, resulting in progressive personal income tax system becomes weak. Again,different tax rates apply to different tax units, the practice will produce such as "marriage penalty "," marriage bonus" and so on. Finally, the development trend of therate structure of the United States made a forecast of personal income tax: the shortterm, due to the widening impact of the U.S. financial crisis and social inequality,the rate structure by the United States into a six seven current rates structure, like therate structure becomes more complicated. But if we look into a longer period, the ratestructure will continue to flatten the inevitable development. Taking into account theUnited States has been using a proportional tax on capital gains, although long-termprofits tax rate is20%, but is still low compared to labor income and. Therefore, webelieve that the U.S. personal income tax rate structure in the long term, there is stillfurther reduced and further simplify the big trend. While optimizing the rate structureof the tax base should be fine, changing tax model of close cooperation, in order totruly achieve the policy effect.The personal income tax system in the United States levied mechanism optimization: from the personal income tax collection system, tax declaration system,three tax-related service systems perspective of social analysis and reasonablemechanism for the U.S. personal income tax levied science. First, the U.S. personalincome tax collection is very scientific and effective. Mainly reflected in thefollowing aspects: tight revenue control system, rigorous scientific cross-auditingsystem, an effective punishment and restraint mechanisms, scientific personal incometax collection agency, the Civil incentives based on performance evaluation ofscience, law enforcement service-oriented tax collection mode, modern, informationcollection and management tools. While the U.S. personal income tax system as wellas the refinement of the model: its emphasis on the U.S. personal income tax leviedmechanism to taxpayers as the center for different types of taxpayers different taxadministration. While establishing taxpayer service bureau, set up a large number ofservice providers, to provide tax help via telephone, Internet and other means tofacilitate taxpayers tax law. U.S. personal income tax levied mechanisms,emphasizing the fine management. U.S. IRS tax administration attaches greatimportance to the refinement. Such as the use of centralized data analysis system,using the most efficient way to do well aware of the situation of the taxpayer andeffective inspection, to prevent the loss of taxes. U.S. personal income tax leviedmechanisms, emphasizing collaborative tax the tax Carolina. United Statesestablished a strict tax-related information sharing system. Tax information sectorcollaboration while providing very accurate reporting, clearly defines the kinds ofinformation reporting content, format and fill in the description. Through theestablishment of community information sharing system, on the one hand to facilitatethe utilization of the tax department to promote a variety of tax-related informationsources of revenue management, on the other hand is also convenient taxpayer fullyand accurately control their own income and expenditure, and thus accurate taxes,improve tax compliance. Of course, the perfect levied mechanism is to pay thecorresponding price. So, even though the personal income tax system revenue eachyear to the United States made a great contribution, but considering the cost of itscollection, the overall efficiency is not high. Tax cost consists of two parts: the costof the tax authorities and taxpayers to pursue collection costs. Finally, we optimizethe trend in the U.S. personal income tax levied mechanism made Forecast: U.S.personal income tax levied mechanism, not simply homing "strict administration."Strict administration, the U.S. personal income tax levied only one aspect of the system. United States to implement information technology levied, fine levied,collaborative levied, levied for the socialization experience, scientific co embodiedin the United States personal income tax levied system. The impact of the financialcrisis on the United States is still not completely eliminated, the United States is stillin the post-crisis era. The U.S. government ’s tax collection efforts on more favorablemanagement will focus on high-income and low-income groups, regulators, while themiddle class have services in place. This difference of policy objectives, means thatthe U.S. is bound to the personal income tax levied mechanism towards a moresophisticated, information technology, collaboration, social science levied direction.After the U.S. individual income tax system to optimize horizontal and verticalstudy, we have come to the basic idea of tax optimization. Given the typicalAmerican economic status and their personal income tax system, the experience of itssuccessful reform is more for us to learn from. Personal income tax is the largest taxstructure in the United States, and the status and influence in the Chinese taxstructure of the economic system, political system are becoming increasinglyimportant. The features of a worldwide tax reform is obvious, that consistencydirection of reform. Therefore, our analysis of the U.S. personal income tax systemoptimization trends to some extent also learn from the world’s personal income taxsystem to optimize the experience. Meanwhile, the personal income tax system reformin China from China’s current situation can not, after all, mainly for China’s personalincome tax levied on domestic residents, is to serve the development of China ’seconomy and society have been made. China ’s economic reforms, including taxreform, and only from China ’s specific national conditions, to the principle ofnational conditions as the first principle to be successful. Can also be seen from thereform of personal income tax systems of other countries, changes in the personalincome tax system also takes into account the country’s economic and socialdevelopment, not the blind pursuit of experiences and practices of other countries.China is currently underdeveloped market economy countries, the income to befurther improved, the income gap is growing, the taxpayer is not strong sense ofinitiative taxes, etc., are in the personal income tax system reform of China’simportant consideration.So we learn from the American experience, it must take into account China ’snational conditions and tax differences, from both horizontal and vertical dimensionsto compare the differences in Chinese and American personal income tax system, and thus draw conclusions applicable.First, we need to compare the longitudinal course of development of China-USindividual income tax. Mainly from the perspective of a longitudinal analysis of theway the United States and Its Implications personal income developing countries, theUnited States less take detours, lessons learned, and better promote the optimizationand the personal income tax system. Meanwhile, the difference between China andthe U.S. personal income tax system of the elements from the horizontal, includingdifferences in tax model, the progressive differences, differences in the rate structure,the tax base design differences, differences in administration and so on. Combinedwith differences in these different elements, draw useful conclusions ComparisonStudy reform.New ideas for U.S. income tax purposes optimized " Fine bases, dual rates,simplifying the tax system, scientific administration, strengthening progressive " forChina to promote the personal income tax reform is very meaningful reference. Wediscuss the personal income tax reform, when China, but also from personal incometax progressivity optimization, optimization of the tax base, tax optimization, taxmodel optimization, optimization of five angles collection according to this ideaexpanded.