The Study Of Progressivity Of Individual Income Tax In China

The individual income tax is one of the main categories of taxes in the most countries in the world. The important function of individual income tax is raising finance income, regulation of economic operation and regulating the income distribution. Due to its high taxes for high-income people, low taxes or no taxes for low-income people, individual income tax reflects the principle of justice and the progressivity characteristic. It has been regarded as an important tool that can regulate the income distribution.Along with the economic system reform and the rapid development of economy, people’s living standard had the very big enhancement. But at the same time the urban income level gap is more and more expanding. For the highest income levels of urban residents, per income in a year amounted to51431.57yuan in2011, which is10.85times for the lowest income levels. At the same time2012government work report reading that,"strengthen the high income tax regulation strength, strict salary management of state-owned enterprises and financial institutions senior executives, enlarge the proportion of the middle-income earners, increase the income of the low-income, promote fair chance." The study of individual income tax progressivity has the important theory significance and practical significance.Based on the study of domestic and foreign articles, the paper has studied the current progressivity of individual income tax condition in our country. This paper includes five parts. The first part is the introduction of the selection of the topic background and significance, the review, the structure as well as the innovation and the insufficiency of the article; The second part is the tax progressivity theory foundation, including individual income tax progressivity theory, progressive measurement, the factors that influence the progressivity of individual income tax; The third part is the analysis of individual income tax progressivity, including the general analysis and empirical analysis. The general analysis is through to our country individual income tax progressivity history and the present situation, the empirical analysis includes individual income tax progressivity and residents income distribution effect; The fourth part is international experience and reference of the individual income tax progressivity, analysing the introduction of the foreign typical countries of personal income tax progressivity and fair income distribution effect, we can conclude income tax reform of inspiration and reference meaning; The fifth part based on the progressive perspective is pointing out China’s personal income tax reform direction, this part is presented in four aspects of personal income tax reform to choose direction based on progressive view from perfecting salary project income tax rates, adjusting the individual business income tax rate、 the property income comprehensive collection and implementing progressive tax rate, perfecting the preferential tax policies and improving the level of tax collection and managementThe innovation of this paper lies in the difference between the traditional comprehensive discussion on how to improve personal income tax or from individual income tax progressivity influence factors of single factor research of individual income tax progressivity and the angle of progressivity and more personal income tax progressivity influence factors point of view of the individual income tax. The paper from individual income tax regulating town residents income level of function and angle inspection the current our country individual income tax progressivity condition, probes into the main typical countries in the world and China’s individual income tax progressivity development course and individual income tax fair income distribution function, research of the current our country individual income tax progressivity status and existing problems of individual income tax, and put forward the our country personal income tax reform ideas and specific targeted reform Suggestions. Deficiency in although personal income tax from multiple influence progressive factors on individual income tax progressivity are analyzed, but also have no detailed, and at the same time each factors of influencing the progressivity of individual income tax is not the effectiveness of carrying out a detailed inspection.In this paper, through theoretical analysis and empirical analysis, we can get the suggestions in the direction of personal income tax reform:choose classification and comprehensive combination of taxation mode, perfecting salary project income tax rates, adjusting the individual business income tax methods、 the property income comprehensive collection and implementing progressive tax rate, perfecting the preferential tax policies and improving the level of tax collection and management.