China's Personal Income Tax System Research

Revenue is an important component of the fiscal income; personal income tax revenue is the main contents of the revenue. Establishment of a scientific and rational personal tax management system making it more standardized, and consistent with international practice, is an inevitable trend of the market economy development.Since 1799 personal income tax has been found by British, we have more than two centuries of development and improvement. Personal income tax has become an important means of fair distribution of social wealth, organizational revenue, and regulating of economic operations for modern government. And it becomes the main tax of most developed countries. Now the gap between rich and poor gradually widens and social injustice becomes more and more obvious. Personal income tax has a function of distribution of social wealth and steadiness of the economy, China's personal income tax has a short time of introduction, the lack of theoretical and practical experience exists. So the research of personal income tax system is necessary.This article first introduced the theory of personal income tax system, and then analyzed the development course of personal income tax system. Through analysis and discussion of the personal income tax of foreign countries, the author studied a few views from a number of domestic and foreign experts and scholars, combing with practical work experience, advanced practical arguments and found a solution. Specific measures were: reducing the maximum tax rate, expanding the tax base, gradually establishing a more comprehensive system, such as the dual income tax system. And the article advanced a number of specific strategies of perfecting personal income tax, such as: the improvement of the tax system is a gradual process, should be given priority to strengthening tax collection, the establishment of a sound information network, and in the reform of the tax system should reflect the people's desire for fair distribution and balance efficiency and equity. The expectation has certain reference value for personal income tax reform of our country.