| The frame of personal income tax law of our country, which is based on the economic system, tax system and the situation of our productive forces in the initial stage of reform and opening of our country, has not kept paces with the demands of building a well-off society. All kinds of defects of the elements of tax law manifest the unsuitableness. So, some effective measures should be adopted to aim at the revision of the personal income tax law. The subject of tax-paid should be defined by the resident status of taxpayer. Except for the resident and non-resident, the law should add the "permanent resident" which should be defined by the principle of economic interest center. Each kind of taxpayer undertakes the corresponding duty of paying tax. The main problem of the income to be paid tax is the range of imposing tax is too narrow which results in the proportion between personal income tax and total tax is comparatively low. The counter-measures to solve the problem is to diminish the income which is exempted from tax and impose properly tax for the income from transferring stocks and retire pension. The main problems of tax system and tax rate are that there exist too many levels of tax rate, high marginal tax rate and different tax rates for the income of the same nature. So, the law should change the tax system from classification system to comprehensive system, lower the marginal tax rate, lessen the levels of tax rate and adopt the same tax rate for all kinds of income from labor. There also exist too many questions on the imposing tax and management including the incapability to determine income, the imperfect system of reporting of taxpaying, the weak force of supervision and management and the simple imposing measures. The effective measures is to establish the system of tax-paid coding and electronic identity, to consummate the system of withholding and remitting, to enforce the law more strictlyand strengthen the propaganda and education of paying tax consciously etc. While discussing the above improvements, we should hold thoroughly the value and function orientation of personal income tax law on the background of building a well-off society, which is applied as our guiding idea of our activities. |
