Study On The Efficiency Of China's Individual Income Tax Reform And Its Optimization

In recent years,China has vigorously promoted the reform of the tax system with the aim of promoting supply-side reforms by reducing taxes and reducing fees,reducing the tax burden of enterprises and residents,promoting household consumption,and driving the sustained and steady growth of the Chinese economy.Since the end of 2018,China has introduced a new personal income tax reform,which will increase the basic cost deduction from 3,500 yuan/month to 5,000 yuan/month,and on January 1,2019,it will increase six items of education,housing,pension,and medical care.Deduction for the main direction of the fee.This series of personal income tax reforms with tax cuts as the main purpose has had an effect on the macro economy,which has reduced the burden on taxpayers and has a specific impact on the general public.There is still no corresponding empirical data support.Therefore,this paper focuses on the new personal income tax policy under the background of tax reduction,and discusses the above-mentioned practical problems from the perspective of cost deduction.At the same time,it proposes directional suggestions for the future development of personal income tax,which has certain research value.This paper sorts out the personal income tax theory in the logical order of personal income tax,personal income tax income distribution and redistribution theory,personal income tax deduction,and personal income tax system.A theoretical analysis of the relationship between personal income tax policy and social effects,public behavior and other aspects.Secondly,it reviews the historical changes of tax policy development since the reform of tax-sharing system in China.At the same time,it compares the differences between domestic and foreign personal income tax,and further summarizes the impact of personal income tax system,investment and consumption,economic structure and improvement of people's livelihood..Then through the data,the survey analyzed the macroscopic effect of the personal income tax reform policy in 2019.On the other hand,the catastrophe progression method was used to model and analyze the six expenses plus deductions in the personal income tax reform policy.The empirical analysis of the influence of these six deductions related to people's livelihood on various income groups was conducted.Through these empirical analysis,we make an evaluation of the effectiveness of China's current personal income tax reform policy.From the structure,the paper is divided into seven chapters,the first chapter is the introduction;the second chapter is the core concept and core theory involved in this paper;the third chapter is the analysis of China's personal income tax deduction system;the fourth chapter is the foreign personal income tax system.The fifth chapter is the empirical analysis of the effectiveness of the personal income tax reform;the sixth chapter is the policy recommendations for the improvement of China's personal income tax.The seventh chapter is the conclusion and outlook.Through empirical research,this paper finds that the new personal income tax reform in 2019 played a huge role in personal income tax cuts.According to the semiannual tax data of some provinces,the total personal income tax after reform was reduced by 36.78% compared with the same period of last year,but The model was established and analyzed by the catastrophe progression method.It was found that this reform did not fully achieve the optimal effect in income redistribution.Therefore,this paper proposes to improve the personal income tax system;promote the comprehensiveness of the personal income tax system;to achieve the refinement of personal income tax deduction;to do a good job of personal income tax system progressive adjustment;optimize the personal income tax rate structure;strengthen the personal income tax collection system Six other personal income tax reform policy recommendations,such as management,hope to provide ideas for the next step in personal income tax reform.