Research On Personal Income Tax Reform In China

Residents income distribution gap in China has been state and people attach great importance to the problem,18 the fifth plenary session put forward the new idea of "sharing the development",19 big report pointed out that to promote the income distribution is more reasonable and more orderly.This requires us to accelerate the reform of the income distribution system.According to statistics,the gini coefficient in 2016 is 0.465,and the gini coefficient in 2017 is 0.469,which largely exceeds the international warning line of 0.4,indicating that the income distribution of residents is still very serious.As one of the direct taxes,personal income tax has the effect that other taxes cannot achieve in adjusting the income distribution of residents.First,the paper calculates the different income levels of urban residents share of after-tax income before tax,the income levels of tax burden and tax records-the Gini coefficient is analyzed from different angles the effects of personal income tax adjustment of urban residents income distribution in China,it is concluded that the individual income tax in the adjustment of urban residents income distribution has played a positive role,but the effect is weak.Through a lot of empirical analysis,research our country individual income tax to adjust urban residents income distribution effect,and further analyzed the influence the effect of various reasons,has been clear about the direction of personal income tax reform in our country,and puts forward the personal income tax reform Suggestions accordingly.First of all,the paper calculates the different income levels of urban residents share of after-tax income before tax,the income levels of tax burden and tax records-the gini coefficient is analyzed from different angles of urban residents income distribution situation and its role in the regulation of tax.Individual income tax does have certain effect in adjusting action,but very weak.Secondly,the paper detailed measure mode of personal income tax collection "of our country,the expense deduction standard,the average tax rate,tax evasion and tax factors such as size,analyzes the limiting distribution of income in our country individual income tax adjustment of reason,pointed out that China's current personal income tax classification pattern defect,the average rate is low,the collection and administration,tax erosion,expense deduction standard is not reasonable,tax on a smaller scale,and other issues.Finally,in view of the reason,puts forward strengthening our country individual income tax adjustment effect play a reasonable Suggestions,including tax system mode of our country shall be submitted to the classification combined with a comprehensive transformation,to further expand the scope of the personal income tax,lower wages and salaries income highest marginal efficiency and so on.