Microsimulation Of Individual Income Tax Reform

Individual income tax is a kind of taxes that impose the earnings of individual (a natural person). Individual income tax institution is one of the most important parts of the national public finance policy. It is a kind of basic forms that a nation imposes the individual income, and its functions include raising the public finance income and adjusting the individual income. Under the trend that our economy develops quickly and people's income level raises significantly, the income gap between our country residents is much bigger, so individual income tax becomes more important. Therefore, the reform and perfect of the individual income institution have already become the issue focus of the whole world scholar, also is important problem that all country governments concern.Our country individual income tax institution has some problems on the following aspects: firstly, on tax-free criterion, the criterion is too lower and actually it aggravates the lower income people on tax; secondly, on tax ratio frame, our tax ratio frame is too complex to lost its positive effect. The results of above problems all bring disadvantageous influence to our country residents'income gap. In recent years, our country residents'income gap gradually becomes big, to a large extent because individual income tax institution can not act on economy lever to adjust income gap sufficiently.Microsimulation model is a kind of new policy analysis model in the western economic model with the development of computer technique in 1960s. Microsimulation model researches the micro unit, and simulates and analyses the allotment effect of policy, such as tax, housing, the society security...etc. In the socialism market economy...