The Personal Income Tax Question Research

At present, Personal Income Tax(PIT) is the fourth largest tax in China that is next to the Value-added Tax, Business Tax, Corporate Income Taxes levied by the tax authorities. It has played its role in the organization of tax revenue, at the same time, which has the important function on regulation of the distribution of people and achieve social equity.PIT is a direct tax that is related to the vital interests of us. It is not only an important national tax revenue, but also an important means of social adjustment of income distribution. Now PIT exists in most of countries and is also rather important in the tax system.There is no Personal income tax law in China before 1980,which become a formal tax in September 1980 by issuing legislation and was amended for three times in 1991,1999 and 2005. Since the introduction of tax revenue has grown very rapidly from 1980 collected more than 160,000 yuan to a collection of more than 318,500,000,000 yuan in 2007, PIT has played an important role in the adjustment of personal income distribution and promote social equity. However, with the deepening of reform, economic development and China's accession to the WTO, China's economic structure has undergone major changes and the gap between personal income is extanding, PIT exposed gradually the many contradictions and problems in the specific operation. The advantage is restricted in the Organization of income and adjustment of income distribution.As PIT related to the second adjustment of distribution in the field of social justice, to weaken his role has aroused people's attention, in order to improve the personal income tax law and enable it to adapt to the more complex domestic environment and give full play to its The role, we need to carefully analyze the existing problems and reform of China's personal income tax law by studying foreign personal income tax law .This paper detailed the history, content, features and the the development of the status of the PIT after studied the PIT's basic theory . On this basis, then ,it Carried out a more in-depth exploration for the existing problems in two major areas and researched the the shortcomings of the existing PIT based on fairness and efficiency Finally, the paper put forward several suggestions on China's personal income tax reform by using of the advantages of the United Kingdom, the United States'personal income tax system. Combined with China's national conditions,We must re-set the deduction standard of PIT in order to give full play to the effect of PIT adjustment. First of all, we should raise the starting point of PIT and strengthen supervision of tax administration and modernize it.Second,we should learn from foreign experience and do a good job in supporting the PIT's reform and gradually improve China's PIT system.