Research On Labor Income Personal Income Tax

With the further development of Reform and Opening-up in China, the marketeconomic has caused tremendous changes in people’s income structure. There areincreasingly earning resources and income forms. Even though, the labor income is used tobe the dominating part to support their lives. Therefore, the study on labor income tax willplay a significant and practical role in the accommodation of the income distribution andbuilding of a harmonious society.There have been many labor income tax items in the existing individual incometaxation system, such as the wage and salary income, labor remuneration, author’sremuneration, and independent earned income part in the income derived by individualindustrial and commercial households from production or business operation. So manydifferent involved items result in unfair tax-bearing. Compare with the capital gain tax onstock transfer earnings, the current tax-bearing of labor income is much heavier. What’smore, there are many limitations in the present individual income tax collection andadministration system. Out of consideration of tax system simplification, the paper bringsforward a new conception “Labor income tax”, basing on consolidating and extending theexisting relevant taxation items. Learning from the advanced international experience, thepaper mainly puts forward some policy suggestions to rebuild a new labor income taxationsystem, mainly from object of taxation, legal deductible item and tax rate three aspects.Furthermore, the paper applies relevant system economics; information economics andtaxation obey theories to improve the labor income tax collection and administrationsystem, as well as, the relevant supporting measures.