Analysis of Economic Growth Effect of Individual Income Tax

The individual income tax is a tax category with most potentiality in future. This conclusion is based on the rapid growth of individual income tax of our country and the development of international tax revenue. This tax category will play a more and more important role in the economic life. In this article, the author uses the way of data analysis and quotes the western tax theory and also combines the current situation of individual income tax of our country. By doing so, the article exposes the relation between individual income tax and Gross Domestic Production as well as the impact on consumption, deposit, investment, workforce supplies. The article suggests that our country should reform individual income tax system so as to raise income tax and bring it into full play.