Research On The Comparison Of Individual Income Tax System Between Western Country And Our Country

As a world tax category, individual income tax has two hundred years history since it has been established, and it becomes the main incoming source of national financial revenue in most countries. It has dual function of organizing the financial revenue and adjusting the income distribution. The perfection of individual income tax law has been regarded as one of the important symbols of the maturity of one country's tax system. Individual income tax was levied quite late in our country, but it is developing with high speed. Since our country has began to levy individual income tax in 1980, it plays some activity roles in promoting the economic development of our country. It had become the forth largest tax of our country. At the same time, the personal income gaps of our country is furtherly enlarged day after day, which is against the "Construct Harmonious Society", a further reform is needed.According to introduce the difference of individual income tax system and compare the different experience of western country, this paper analyses the developing situation and disadvantage of individual income tax system of our country. Drawing on the experience of western country in development, it put forward proposal on reforming and improving the individual income tax system of our country.In the introduction part, the paper introduces the background, current situation and significance of individual income tax system, pointing out the purpose and direction of this research. Apart from that, this paper is divided into four parts in the main body. First of all, this paper makes a brive introduction and character of individual income tax system of western country; the second part is the evolution and the status of the China's individual income tax system, it emphasizes the character of current situation of our country's individual income tax system; the third part makes the comparison of individual income tax system between western country and our country, and then indicates the major problems of individual income tax system of our country; the last part proposes some basic ideas and suggestions to perfect and develop our country's individual income tax system, pointing out a direction for individual income tax to"deepen reform and perfect system".