Research On The Mode Of Personal Income Tax In China From The Perspective Of Income Distribution

Under the background of the expanding income distribution gap in our country, we need to regulate income distribution and narrowing the gap between rich and poor through a variety of means. Individual income tax belongs to fiscal policy and it act directly on the taxpayer’s income, so it has a strong effect on adjusting the income distribution. However, the current policy of individual income tax has a great difficulty to achieve the task of adjusting income distribution. The reason is the taxation mode in our country belongs to scheduled income tax, and it has been exposing its flaws and shortcomings gradually. Therefore we have the need to change our taxation mode.On the normative analysis, this paper analyses the differences between efficiency and fairness of different tax modes and explains the influence factors when choosing a tax mode according to the principle of tax equity and tax efficiency. On the empirical analysis, this paper proved the large income distribution gap in China by the Gini coefficient in recent years, and use MT index and the K index to measure the data relevant our individual income tax redistribution effect according to the data obtained in statistical yearbooks just like foreign scholars’ research methods. The conclusion is our individual income tax has poor redistributive effects, and the horizontal and vertical equity are inadequate. After that this paper explains how the tax mode has led to this result.Individual income tax system is more perfect in Western countries. Thus, some of the advanced experience of foreign countries is worth learning from. This paper mainly introduces the selection of taxation modes, tax declarations and tax collection and management in foreign countries such as the United States, Britain, Japan, France and other developed countries.Based on the above analysis, this paper sums up the future direction of the reform of our taxation mode. We need to focus on tax equity and choose the compound income tax mode. Besides, this paper summarizes the measures need to implement, such as simplifying the categories of individual income tax, broadening the tax base, choosing family as tax units, altering the expense deduction standard and improving tax audit system for new taxation mode.