Comparative Study Of The Chinese And Canadian Income Taxation

After the Reform and Opening,China's economy has great development,by 2010,China's GDP has reached 6.101 trillion dollars overtaking Japan to become the world's second-largest economy.At the same time,however,China's rich-poor gap is increasing gradually,the World Bank published data showing that China's Gini coefficient has been higher than 0.4 which is the international warning line.If this phenomenon exists for a long time,the great rich-poor gap will lead to social instability and then affects economic development.Personal income tax is the means of raising revenue and the important tool of adjust income distribution for achieving equity.China has clearly put forward the target of establishing synthesis and classification system of personal income tax,the reference of Canada's personal income tax advantages not only beneficial to promote China's personal income tax reform,increasing the proportion of individual income tax,but also beneficial to the reform of tax structure,promoting China's deepening reform.This paper is based on the principle of equitable taxation to analyze China and Canada personal income tax comprehensively,and proposes several suggestions for reform China personal income tax.This paper is divided into following five parts: the first part states the necessity of China's personal income tax reform,and draws forth the research value of this paper,through both at home and abroad literature reviewed;the second part states the tax fair theory and the personal income tax theory,laid the foundation for later qualitative analysis;the third part analysis the personal income tax development course,tax select of history reasons and tax scale of China and Canada from history perspective;the fourth part author defines fair firstly and propose measure standard of tax equity,then compares on personal income tax ranges,costs deduction and rate design of China and Canada based on fair tax perspective;the fifth part conclude the problems of China personal income tax about fair tax,puts forward the personal income tax reform proposals of China referenced to Canadian.Innovation of this article mainly showed on the following aspects: first,analyzed the personal income tax of China and Canada from historical and fair two new perspectives.Second,throughout the qualitative analysis and quantitative analysis in this paper,analyzed the similarities and differences of Chinese and Canadian personal income tax system,then put forward personal income tax reform proposals of China.