Concerning on Reform of Personal Income Tax System Based on Expanding Its Functions

The main functions of personal income tax are rising public finance revenue and adjusting income distribution.Reform personal income tax system attracts wide academic attentions.Based on literature review,this paper finds that few researchers employ household survey statistical data as the basis of study.Thus,their results and suggestions absent the support of positive approaches.In line with Sichuan urban household survey data in Dec.2008,we probe the current functions and future reform of individual income tax.We argue that current personal income tax cannot adjust income distribution effectively.However,exemption amount of individual income tax is suitable.In light of calculation of urban residents' income statistical data,suggestion of replacing current categorized income tax by integrated income tax is put forward.