Analysis Of China’s Individual Income Tax Law From The Perspective Of The Principle Of Ability To Pay

China’s individual income tax law has been adjusted according to the development of social politics and economy.However,the improvement of the individual income tax law is not a one-step process.The individual income tax law must be constantly adjusted with the needs of social development.This is an inevitable trend of the development of the national tax system,as well as a long-term and important task.Based on ability-to-pay principle of taxation,this thesis comments on the China’s individual income tax law,analyzes the progress of China’s individual income tax law and looks forward to the future development.The basic implication of the ability-to-pay principle of taxation is that the tax liability must be fairly allocated among all taxpayers based on the taxpayer’s ability to pay taxes.The ability-to-pay principle of taxation has the function of guiding the design of the individual income tax law taxation rules,preventing excessive taxation,and ensuring the fair allocation of tax burden.Therefore,it must be implemented in the process of reforming the taxation legal system in China.From the view of the ability-to-pay principle of taxation,this thesis analyzes and summarizes the evolution history of China’s individual income tax law system,affirms the progress of the seventh tax reform,points out the shortages which mainly inspects aspects of the taxation mode,tax unit,tax rate,and the expense deduction system.However,the tax reform cannot be self-sufficient and needs to be global.The tax reform is not a country’s individual reform,but a mutual influence and integration,achieving gradual development of internationalization.Therefore,in the process of individual income tax law reform,we should learn from the successful experience of foreign countries.This thesis expounds the successful experience of individual income tax law reform in the United States,Germany,Japan,and Chinese Taiwan,and throws out suggestions for reform of China’s personal income tax law in five aspects: taxation mode,the expense deduction system,tax rate,taxable income range and proposes the direction of future development.