Collection of Personal Income Tax Problems and Solutions
Abstract
China's personal income tax reform is the current hot issues in tax reform. Many documents from different levels and different perspectives on the current personal income tax reform in China causes and analyze problems and recommend reforms.
Regulate the distribution of income as a direct function of the tax, whether the annual "two sessions", or influential forum for the voice of a tax reform a long time. Especially this year, a number of high-level on many occasions that want to increase the imbalance of income distribution in the context of reform, a tax reform is to be sent to the reform of income distribution for the important task of breaking up. Personal income tax in our country does not play well adjusted personal income, ease the wealth gap. The reason, my current personal income tax model category can not meet the current needs of economic development in urgent need of reform.
The reform of personal income tax system, in addition to improving the threshold, should also be fundamental in a tax system for rectification. A tax system in China, is still practiced in the category income tax system, rather than the internationally popular integrated tax system. The biggest shortcoming is the classification of the tax system does not take into account family responsibilities and spending taxpayer deduction system, difficult to fully and completely reflect the true ability to pay of taxpayers, resulting in multiple sources of income, comprehensive income people with high tax and even less do not pay taxes, income fewer sources of low-income people, more than the tax inequity.
China's personal income tax reform is important, but the current individual income tax, there are many problems, adjust the rate structure, improve the tax incentives, optimizing the tax service of a comprehensive personal income tax system and other reform measures to improve the personal income tax system.