On the Problem of Progressives of Personal Income Tax:An Analysis from the Perspective of Flat Tax Reform in China

In accordance with the requirement of fitting for the operating mechanism of market economy,the personal income tax needs a fairly thorough reform.In addition to the construction of the personal income tax system combining the classification and integration in the aspect of tax basis,one center problem is to restructure the tax rate structure of personal income tax.China can adopt the gradual reform scheme of the two-step approach and the flat tax reform scheme of the one-step approach.The personal income tax after the reform should be the tax on the total income according to the combination of both the incremental average tax rate and the degressive marginal tax rate.China has possessed the political,financial and technical conditions to implement the flat tax reform,and now it is the right time to reform.