Research On Ameliorating China’s Personal Income Tax System

Personal income tax is getting more and more important inChina and other countries as a direct tax which has the functionof adjusting personal income distribution. But the personalincome tax does not play its due functions fully in our country;it even does not meet the principle of tax fairness. Thisarticle explains the theory of personal income tax, trying tolearn the advanced experience from other countries. It pointsout the problems which our personal income tax system has andalso gives some advice.This article is divided into five parts, the first part isintroduction. This part discusses the background andsignificance of researching personal income tax on the currenteconomic situation of our country and international. It alsoincludes some achievements of foreign and China scholars. Thesecond part is the description of basic theory of personal income tax, introduced the production and development ofpersonal income tax. This part also makes the compare of threekinds of personal income tax system and describes the functionsof personal income tax. The third part is about the developmentand problems of our personal income tax. This part defines ourpersonal income tax system through the simple description ofthe establishment and development of personal income tax system.There is also a summarize of personal income tax’s currentstatus. The most important content of this part is the problemsthat our personal income tax system has, mainly on the taxsystem, tax design and managements. The forth part is thecompare between alien countries. Our country can learn muchexperience from these countries at the part of tax system, taxrate design and other aspects. The fifth part is the advice ofimproving our personal income tax system.Separate-Comprehensive Mode is still Separate Income Mode inessence; it still has the problems that the latter has. So thispaper gives a advice that we should adopt the Comprehensive Income Tax Mode directly. In order to overcome the difficultthat our collection of personal income tax is in very low level,carrying out prepay system on the basis of current collectionand management of personal income tax is necessary. Reducingthe burdens of taxpayer and the tax authorities by designingthe tax rates scientifically. Using the family as the tax unitand designing an extra deduction. Implementing the two-waysystem and increasing the enforcement efforts of personalincome tax.