Study On The Modification Of <Individual Income Tax> And Fair Taxation

The principle of legality in taxation is the most important principles of tax and it is a value measure to judge the effect of the Modification of Individual Income Tax.Rational social structure should be olive in shape,and the proportion of the medium-income group large in building a modern society.As the third largest tax revenue after value-added tax,corporate income tax in China,The individual income tax functions as regulating income gap,stabilizing economy in social economy by lay a tax upon the people.The premise of our current research is weigh up the fair taxation and define each element of fair taxation.This paper argues that benefitial to the less-income class and hazardous to high-income class with the Ability to pay principle,enlarge proportion of the medium-income group,build Olive-shaped social structure.It is the object of this paper that would help me find what caused the problem of fair taxation and then suggest some solutions in the legislation of this aspect.Under the Modification of <Individual Income Tax>,I found that our government hereby reform the present tax system pattern,practices tax system that the synthesis and the classification unifies,improve the expense deduct standard,adjusted rate structure using comparison analysis method and actual evidence method.Our reforms will make the code fairer by raising taxes on the wealthiest while cutting them for everyone else,but I find some problems that marginal tax rate is high,tax rate and cumulative class difference is unreasonable;It is generally a good thing that reform Personal Income Tax to implement a system that combines a comprehensive type of PIT and a categorical type of PIT,and it is not good for taxpayers that royalties and business income have not clear cut.As salary threshold for the individual income tax was increased and add special expense deductions,income from wages and salaries,a monthly deduction of 3500 yuan shall be allowed for expenses before,but now we can deduction of 60000 yuan shall be allowed for expenses every year.This reform can minimize low-income group’s tax liability and it is fairer than before.It is unfair that system of transfer price is a part of the taxpayer strategies,But reform“refused to discuss” the strains that might be caused by differing levels of economic development.It is good for fair that special expense deduction items are related to children’s education,the livelihood of elder people,but it had no regard for the home life.Due to the running personal income tax is lack of home life,it is really hard to reflect the principle of the fair tax burden.In this paper,we discuss improvement of PIT in mode of tax system,expense deduction,unit to be collected and so on.I would like to make the following recommendations that rethink the tax system,The objective is to reduce the amount of tax noncompliance in the greatest degre,Realizing the fair tax burden is the important value of realizing equitable income-distribution.