On the Problems with China's Reform on Individual Income Tax

Individual income tax is the tax imposed on the taxable income of natural person;it can play an important role in raising facial income and promoting the fairness of income distribution.Individual income tax is closely related to the interest of every natural person.Analysis on the current situation of China's individual income tax shows that,with the development of China's economic institutional reform,the establishment of perfect of market economy,China's economic development level and the overall national strength has been improved so much.And there are some problems with the prevailing mechanism of individual income tax,such as the not scientific pattern of imposing,the irrational tax rate,the unfair starting point of taxation and the not well managed imposing activities.To further reform and perfect the tax system of individual income tax and give full play to the role of individual income tax in organizing income,promoting the fairness of distribution and adjusting economy,we should further perfect the tax basis of individual income tax,formulate the scientific tax mechanism of advance payment,promote the two-way declaration,expand tax basis,decrease the tax rate and enhance penalty.