Discussion on the Further Improvement of our country's Individual Income Tax Law

Along with the development of the social economy of China, the significances of Individual Income Tax on adjusting the individual income and maintaining social equality stands out. The major problems of our current Individual Income Tax Law include the followings: The tax system mode cannot reflect tax payers' equity and rationality; The collection scope of Individual Income Tax is too narrow to play the part of tax adjustment function better; The tax deduction and tax rate are not reasonable; The tax administration is short of dynamics; Our people's senses of paying taxes in accordance with the law are dim; and the tax payers conceal their income on purpose. The author thinks that the improvement planning include: Choose the reasonable tax system mode; Widen the collection scope of Individual Income Tax and reduce the reduction and remission items of Individual Income Tax; Adjust deduction standard and tax rate; Strengthen the controlling of the tax source; Investigate and prosecute the behavior of evading the tax better and stick up for the seriousness of law. According to the pointed improvement, we should modify and perfect our country's Individual Income Tax Law to meet the need of the development our socialism market economy.