Analysis On Mode Of Personal Income Tax Reform In Developing Countries And The Choice Of China

Income distribution problem is with the advent of remaining human social production activities. And then, with the development of productivity and economic growth and the change of social system and social strata, class interests such as the change of the main structure, income distribution problem has always been closely watched.In the management of the income distribution issues,the role of the government began to highlight, the government mainly through regulating redistribution, in turn, change the domestic income distribution gap, individual income tax is given high expectations for its good income adjustment potential in redistribution. In order to find out the cause, the result of the government to make the policy and the similarities and differences between different countries and search for the path of the personal income tax reform in developing countries, so, it is necessary to analysis the personal income tax policies for different types of countries in the world.On the basis of analyzing three different personal income tax levy mode,we can explicit the advantages and disadvantages of various levy mode and conclude the limiting factors of individual income tax reform in developing countries,further analysis a typical developing country-Russia’s single tax reform’s background, measures and results,and then comparing with the typical developed countries-the United States,analysis the reason of the differences of individual income tax between the two countries, and then puts forward policy suggestions on the new reform of personal income tax in China.The structure of the paper is:the first chapter is the introduction part,mainly introduces the problems,the paper’s definition,literature review,the structure of the thesis and the innovations and shortcomings of this article.The second chapter is the the theoretical analysis,mainly analysis the limiting factors of individual income tax reform in developing countries. The third chapter analysis a typical developing country-Russia’s personal income tax system,analysis the implementation of the "radical" reform of the historical change of the personal income tax system since the collapse of the Soviet union and focus on the remarkable single tax system of the implementation of 2001.The forth chapter discusses the restriction of limiting factor to our country personal income tax system reform, on the basis of the limiting factors of personal income tax system in developing countries and combine the situation of China’s current personal income tax system and the background. The fifth chapter is the simulation calculation on income of different collect mode of individual income tax. The sixth chapter put forward the principle of personal income tax reform in China in combination with the practical situation of the development of China’s individual income tax.In this paper, on the basis of case law and comparative law,has been clear about the function orientation of personal income tax in China is to regulate the income distribution gap,so the overall goal of a new round of reform is:play the role of regulating the income distribution better,become beneficial to tax collection and administration,curb rampant tax evasion,combine the principles of efficiency, fairness and international competitiveness. Then puts forward the following suggestions for a new round of personal income tax reform in China:practice tax system that the synthesis and the classification unifies;reduce the tax rates,cut down the tax classes, simplify the tax system;use the indexing and discriminating expense deduction system;clear the preferential tax project, broaden the tax base;carry out the source withholding combined with their own reports;optimize the tax collection and administration measures to improve the level of collection and management.The innovations of this thesis is:Firstly,make the limiting factors of individual income tax reform in developing countries clearly and make the conclusion that the optimal tax system does not have the applicability.Secondly,make a simulation calculation on income of different collect mode of individual income tax.The defects of this thesis is difficult to obtain data of the United States and Russia,so this thesis is not convincing enough.