The Research On Improving Personal Income Tax System Of Our Country

With the economic and social progress and the development of science andtechnology, great changes have taken place in China’s personal income taxenvironment, has been the implementation of the individual income tax system alsosuffered a bottleneck in the face of a variety of market environment Facing ourcountry’s personal income tax system reform has not been confined to a certain point,but a comprehensive reform zone.To Chinese economic characteristics and optimize the structure of tax system isthe premise, make overall planning, formulate specific measures. After the personalincome tax on the six amendment, focused on determining, excluding the cost of tariffadjustment, collection and management processes and so on, but at present ourcountry tax reform should focus on the transformation of taxation mode, adjustthrough taxation mode, to optimize China’s personal income tax system, perfect thefunction of the individual income tax, positive role in deepening of social andeconomic change.To improve the current individual income tax system, not only can increase thepersonal income tax revenue sources, the strengthening of national macroeconomicregulation and control in income re distribution level effect; also because of thebroader, more nature of the fair to promote the building of a harmonious society inChina, thus enhancing the tax to national affinity; in addition, improve the personalincome tax as an economic means of macroeconomic regulation and control, to ensurethe orderly operation of the socialist market economy. After six revisions, personalincome tax revenue also with China’s economic operation quality, raise the level ofpeople’s income growth. However, as China’s market economic system continuouslyimproved, and speed up the process of global economic integration, China’s economydiversified characteristics, and more and more the mode of economic developmentand income began to appear. Accordingly, high income people also began to emergein each industry and each area, part of the high income source presents new featuresdiversity and invisibility, serious impact on tax revenue and social justice, can say, thereform of personal income tax system has been crunch time. This paper aims at improving individual income tax system in the face of shortcomings exposed duringthe development of society and economy, and learn from some successful experiencesof developed countries, the personal income tax reform, explore the Countermeasuresof perfecting personal income tax, hoping to contribute to the government’s personalincome tax reform.The introductory part of the article focuses on the background, the purpose andsignificance of the topic, and points out the research methods, this paper adoptsliterature review and the innovation and deficiency.The first part of this paper mainly introduces the process of China’s personalincome growth and function positioning. First, early in the development of China’ssocial and economic reform and background, respectively describes theimplementation effect and the tax system of individual income tax, the significance,the effect of individual income tax law of China from the first amendment achieved todate, after the introduction of the personal income tax effects, mainly discusses theindividual income tax has the following functions: one is to adjust the income gap,two is conducive to the elimination of residents of the personal income taxmisunderstanding and doubt, three is the realization of automatic stabilizationfunction.The second part of this paper mainly introduces the existing problems and causesof China’s individual income tax system. The main problem in the principle offairness and income distribution effect, through a combination of examples and theory,analyzes the cause of the problem, from the collection system, the standard deduction,departments, residents pay taxes four aspects of consciousness are analyzed,providing theoretical foundation for the following proposed perfecting personalincome tax system in china.The third part of this paper introduces the reform of the personal income taxsystem. Through the study of foreign experience, the actual condition of the reform ofChina’s individual income tax system, and provide a theoretical basis and referencefor the personal income tax system in China suggestions. The fourth part of this paper in reference to foreign experience in personalincome tax reform, combined with China’s national conditions, to improve China’spersonal income tax system is proposed.