Personal Income Tax Reform Based On The Income Distribution

With the growing of income gap in china, the distribution role of the individual income tax gets more and more important. This article wants to find the problem of the individual income tax, through the analysis of status of china's income distribution and the analysis of the function of the personal income tax. With the reference of the successful experience of foreign personal income tax, reform the system of the individual income tax in china.This paper use the empirical analysis and the normative analysis to reform china's personal income tax, not only enhanced the theory of the personal income tax but also promote the perfection of the tax system and the realization of the fair of income distribution.In this article, the second chapter described some theory of the personal income tax including the definition of tax fair, the history of the reform of china's individual income tax and the function of the personal income tax in china. Then base on the income distribution find the problem, analyze the problem and solve them. In chapter three, firstly use the Gini coefficient make a research of the situation of china's income distribution, including the distribution gap of rural -urban income and the distribution gap between urban individual. Secondly base on the urban individual's income, calculate the difference of Gini between before-tax income and after-tax income, then find the problem of the personal income tax system as the distribution role. Finally analyze the facts which affect the distribution function of the tax.The fourth chapter described the experience of the foreign income tax in three facts, the pattern of the personal income tax system, the expense deduction standard and the tax rate. The fifth chapter referenced this experience to reform china's individual income tax. Firstly, china needs to translate the classified tax model into the mix tax model, and divided the revenue into two classification, labor income and no-labor income. Secondly, analyze whether need to deduct the expense in detail, to index, to compartmentalization. Thirdly, according the idea of the mixed tax system, describe the reform trend of the tax rate.