On Reform and Improvement of Personal Income Tax System in China

The current personal income tax system of our country now faces such problems as bringing inequality, unreasonable expense deduction, too many tax-reduction items and weak macro-control ability. In addition, the function of the tax system in adjust personal income and reliving distribution inequality hasn抰 been fully performed. So the following measures should be taken to reform and improve China抯 personal income tax system: to carry out mixed system, to establish personal income tax adjusting system which is centered around personal income tax, to widen the tax base, build up reasonable expense deduction system and improve tax rate structure.