An Analysis Of Individual Income Tax Reform Based On Redistributive Functions

With the development of our country's socialist modernization,our country's overall tax system has been in the process of continuous improvement,giving full play to the three major functions of taxation in terms of finance,economy,and supervision,and contributing greatly to China's fiscal revenue.The external environment of individual income tax which is closely related to the general population has changed dramatically.However,after the reform and opening policy,when the gap between the rich and the poor in China has continued to widen,the collection mode of individual tax in China has always been relatively monotonous.Obviously,the monotonous tax classification system is no longer in line with the multiple income conditions after the opening policy,and its defects and deficiencies have become gradually overt.Particularly,China's individual tax has been labeled the name"employment tax",and the economic function of individual income tax has always been failing to play its due functions.Not until the individual income tax law was revised,individual income tax related systems were adjusted as income properly adjusted and the redistribution function of individual income tax fully realized.Under the premise of adhering to the principle of individual income tax reform,this article systematically reviews the development of China's individual income tax,and it reflects on the current US political implementation in the hope that to put forward some sound opinions regarding of a classification-integration taxation model which allows taxpayers to choose their own family or individual declaration according to actual needs while fully utilizing the role of its redistributive function positioning as a breakthrough;it proposes several reforms of taxation elements for the model,such as the determination of taxpayers,the expansion of the scope of taxation,the reduction of tax rates,and the increase in exemptions,etc.;two suggestions were put forward for the implementation of this policy:first,from the perspective of improving the collection and management system,the two is to improve the follow-up supervision angle.The two-pronged approach ensures the smooth operation of the system so that public policies can be put in place and the individual taxes in our country can play a specific role in redistribution,thus narrow down the income distribution gap and reduce social conflicts.This article comprises of five parts.The first part introduces the background and ideas of this study.The second part focuses on the comparison of the personal income tax reform process under the state of the two different societies in the United States and China and the current situation as a case to clarify the most important function of personal income tax-function redistribution,to move closer to the"optimal tax system".In the third part,we learned that China's current personal income tax policy is inadequate for the implementation of redistributive functions through a variety of means,and the causes are discussed.In the fourth part,relevant reasonable suggestions are put forward from multiple angles based on part three,attempting to change the status quo and allowing the redistribution function of personal income tax to be better played out;the fifth part is the summary and conclusion of the discussions above.