Analysis And Improvement On Regulation Of China Individual Income Tax To Income Distribution

Although now our national economy is developing fast, there are several problems appear. One of those problems is the expanding income distribution gap, which reduce most people's consumption ability and hinder our economic development. In the tax system, individual income tax is an important tax to narrow the income distribution gap. In our country, individual income tax is growing very fast, which can play a bigger role to our harmonious society. Facing the widening income gap, the paper is studying what is the exact effect of the individual income tax, and how to reform this tax.The paper mainly discusses individual income tax's effect to income distribution gap and how to reform from the four chapters.Chapter 2 analyses the individual income tax's effect to the economic and income distribution then introduces the three modes of individual income tax and the advantages and disadvantages of each mode.Chapter 3 expounds the improvements of individual income tax to the income gap in the developed countries and developing countries. This chapter also analysis reasons of the different effects in the two type countries.Chapter 4 introduces the history of individual income tax in our country and the facts of the income gap. Chapter four then presents how the individual income tax influences the income distribution gap these years and comes to a conclusion that the individual income tax does not reduce the gap effectively. Further more this chapter analysis this effect's reason in our specific condition.Chapter 5 gives some comments to how to reform the individual income tax. To improve the income distribution it needs all the related systems collaborate.