The Differences Of Chinese And American Tax Systems

The tax system is very important in a country. By tax system a country can raise the funds to meet social and economic needs. Throughout our tax system development process, from the founding of P.R.C to nowadays, the present decades, our tax system has throughout several reformation. The first is in the year 1950, the second is in the year 1958, the third is in the year 1973,and the forth is 1994,also it is the greatest reform. Form this reform our country has established the tax system which adapt socialist market economy system. Although our tax system has advanced much, compare with developed countries, ours has much defects. With economic development, our tax increases space is very strong. These all need us to make further efforts.This paper bases on consumers theory. We can learn that when the tax amount is the same income tax is better than commodity tax. So let us look at China and America's tax system. We adopt the tax system bases in income tax, but America adopts tax system bases on commodity tax. Tax categories and taxation structure all have significant differences. At the same time, tax-sharing is also very different.We find that in our tax system there are several problems:first, indirect tax has a bigger proportion and income tax has a smaller one. Second, value added tax and sales tax exist at the same time. Third, in business income taxes, domestic and abroad enterprises face with different taxes. Forth, categories of taxes are few.In order to find the cause of the differences, this paper analyses in perspective of system. We analyses.the cause of tax system from economic system, political system and cultural systemEconomic system consists of property system, resources allocation system and distribution system and the contract system. Political system consists of Political nature, the political structure and political processes. All the three respects affect the formation of tax system. Cultural system not only affects the intension of tax system but also affect the process of tax system.From the compare of the three systems, we can learn the cause of differences between China and America. So our tax system hampered economic and social development. We must take steps to reform:adjust tax burden, optimize tax structure, and accelerate the reform of local tax.The innovation of this paper is as the followings:First, the perspective of studying is new. Many articles did not find the differences between theory and reality. Second, this article takes system perspective is also innovative. Although some existent studies take system perspective, their classifications of systems are different from this article. Of course there are some defects,for example, the deficiency of quantitative analysis because of insufficient data, also there is not close mathematical analysis.