On The Individual Income Tax System Under Ability-to-pay Principle

The Ability-to-pay principle is one of the basic principles of tax law,which is based on the actual economic capacity of taxpayers.In other words,the strong ones pay more taxes,the weak ones pay less taxes.it embodies the principle of constitutional equality.It is also the goal of the regulation and perfection of the personal income tax law.Through the implementation of the ability-to-pay,we can realize the tax fairness,adjust the income gap,and guarantee the basic rights of the taxpayer.Individual income tax,as a direct tax,is a way to organize the national financial revenue.The fairness of the distribution of tax burden is closely related to the basic rights of the taxpayer and tax oder.The ability-to-pay principle embodies the substantive justice,places a greater demand on individual income tax and restricts the choice of tax model,the scope of the tax base,and tax rate.Internationally,the individual income taxs of all countries are constantly improved and developed,represented by the United States,Germany and Japan.Their individual income tax systems pay more attention to the fairness of tax burden among taxpayers.In term of the tax reform of our country,it has gradually changed from the classification income tax system model to the comprehensive and classification tax system mode,and has raised the tax exemption amount,added four special deductions,and further carried out ability-to-pay principle.This paper mainly focuses on the ability-to-pay principle,combines with individual income tax,systematically analyzes how individual income tax embodies the principle.Then it expounds the embodiment of this principle in our country’s individual income tax and the space for further improvement in the context of individual income tax reform.It is divided into the following five parts.The first part is the introduction,introducing the background and significance of this paper.Its main purpose is to analyze the theoretical value of a tax,and combines with the reality of our country in order to promote the further improvement of our tax law,achieving tax fairness.And this part describes the literature research in this field at home and abroad,as well as the research methods and innovations.The second part is an overview of the principle of quantifiable taxation,which analyzes the connotation of the principle from the theoretical level,combs its origin from the historical point of view,and clarifies the status of the principle of quantifiable taxation and its relationship with other principles of tax law.The scope of application of the principle and the limitations in the process of application are analyzed.The third part is theapplication of ability-to-pay principle in the individual income tax.This paper first discusses the theoretical basis that abiliy-to-pay principle can be applied to individual income tax,and then expounds in detail how to implement the principle of taxable tax from three aspects: the subject of tax,the object of taxation and the collection of tax.And it combines with the world’s different legislative situation.The fourth part is the reform and existing problems of individual income tax in our country.Based on the background of tax reform in our country,it analyzes the contents of the reform and the embodiment of ability-to-pay principle.Then an analysis of the tax reform does not reflect the volume of tax aspects of the problem.The fifth part is the prospect of further improvement of tax in our country.This part discusses the reasons why the tax law of our country fails to fully implement aibility-to-pay principle,and analyzes how to further perfect the tax.