Economic Analysis On Personal Income Tax System And Taxpayer's Behavior

In recent years,China has incresed law construction,especially to the tax law. Many improvements were maked to the personal income tax,but still unable to solve the existing problems fundamentally.The personal income tax didn't exert an influence on adjusting personal income and maintencing social justice.Why these reforms and improvements didn't have much effect? Many scholars and the tax administration department attached great importance to this issue and have done many studies.But most of the studies are based on the assumption that taxpayers tend to get round the tax law and adviced tax administration department to enhance tax regulations.The studies do not realize that tax regulations make an negative effect on taxpayers and cause tax avoidance.Therefore,we must study taxpayer's behavior and the decision-making process on tax declaration,and constitute the corresponding measures to solve the issue fundamentally.This paper studies the situation and the existing question of personal income tax,the characteristic,the origin and the decision-making process of taxpayer,using the classical behavior economic theory to analyse taxpayer and advance some improving proposals to personal income tax.