Simulation And Test Of The Progressive Personal Income Tax

China's personal income tax to deduct the amount from 800 to 1,600 per month in 2005. This move will undoubtedly conform to the law on personal income tax is to make corresponding changes in the economic and social conditions in which the powerful evidence. However, only in terms of personal income tax deduction for personal income tax to adjust income distribution reform to achieve is not enough to narrow the disparity between the various income groups. China's personal income tax reform is basically based on the principle of "broad-based, low taxes, reduced level"principle, no changes in taxation on the basis of the maximum number of models to the satisfaction of all the progressive income tax base and ensure the realization of a fair, changes in the tax structure is too complicated and cumbersome levels of the status quo, make the tax law become a focus of the mediation.This paper is divided into three parts:Theoretical literature on the basis of China's personal income tax reform to focus on the final four parts, namely : progressive tax rates, deductions and brackets designed progressive personal income tax and other factors affecting personal income tax. Then people from China's current income analysis, China's personal income tax revenue to achieve policy objectives to be attained without an adjustment to income, and narrow the income gap. Chapter 4 aimed at progressive rates. and the amount deducted from the three-level simulation and test. Chapter 5 is mainly affecting the personal income tax hope to achieve by improving the distribution of income. narrowing the income gap between the tax policies of the various strata of society, as an effective means of building a harmonious society.