专业英语论文 (1)

Analysis of the Shortcomings of the Personal Income Tax System and the Solutions1 An Overview of the Personal Income TaxPersonal income tax is a direct tax levied on a person’s taxable income. The taxpayer is an individual who has a residence in the territory of China, or has resided in China for over a year though without a residence, or has obtained income from China though he has no residence or resides in China less than a year.According to the presence of residence and the taxpayers’living time, they can be divided into resident taxpayers and non-resident taxpayers including Chinese citizens, individual industrial and commercial households, foreign individuals, Hong Kong, Macao and Taiwan compatriots, and so on.China's current personal income tax system has 11 tax base :⑴wage and salary income; ⑵the production of individual businesses, operating income; ⑶enterprises and institutions contract, lease operating income;⑷perjury; ⑸royalties income; ⑹royalty income; ⑺interest, dividends and bonuses; ⑻property rental income; ⑼transfer of property income; ⑽occasional income; ⑾other income.China's current personal income tax is levied on different categories of taxable income. Different categories have different expense deduction rules, tax rates and tax methods. Moreover , it implements an extra progressive tax rate.2 The Main Problems of the Personal Income Tax System 2.1 The Disadvantages of Classified Income Tax SystemIncome tax system is levied on different categories of taxable income. Different categories have different expense deduction rules, tax rates and tax methods. When most people have a relatively simple way of income and low income levels, this system is appropriate. But when sources of income and the income level gradually increases, it is difficult to control the sources of tax revenue and measure the true tax payment abilities of different taxpayers.With the development of the social economic and the changes in the pattern of income distribution, the defects of classified income tax systembecome more and more obvious.First, it is difficult to reflect the principle of tax fairness. The same amount of income taxpayers will bear different tax burdens because their income belongs to different categories. This creates a horizontal unfairness. Different income taxpayers have different deductions, tax rates and incentives, because they get different types of income. Therefore, high-income taxpayers bear lighter tax burdens and low-income taxpayers bear heavier tax burdens. It creates a horizontal unfairness.Second, the classification of the tax imposes enormous space. Project to adopt different tax rates for different types of income and deduction method makes it difficult to realize tax justice.2.2Narrow Tax BaseChina's current personal income base is relatively narrow. Today, under the circumstance of taxpayers' income diversification, if the tax base is not adjusted, it may lack fairness.2.3 Expense Deduction Is Not ScientificDeduction of personal income tax expense is low. The government didn’t adjust it with the increasing income and price. This has resulted in two phenomena that are against to the principle of tax collection efficiency .First, more low-income individuals are in the range of income tax administration which increases the number of collection objects and collection costs thus affecting the collection efficiency. Second, low-income taxation hinders the tax fairness.The expense deduction rules have two primary problems.First, the expense deduction is so narrow that it doesn’t play a good role in regulating the distribution of income. With the deepening of education, housing and social security reform, individuals’related costs will present a significant difference. China's current personal income tax expense deduction rules fail to give full consideration to the taxpayer's individual differences, payment ability and the taxpayers’supporting number, marital status, health status, age, children’s education and other factors.Second, the determination of expense deduction ignores how the change of the economic situation will affect individual tax payment ability. In times of inflation, personal income which is necessary to sustain the basic living will increase accordingly. However, the currenttax system has not implemented expense deduction indexation. If the expense deduction rules don’t change for a long time, it can’t adapt to the changing economic conditions.3 Perfecting Idea3.1 A Comprehensive and Classified Tax SystemTo alleviate the tax burden of low-middle income class, we should move towards the comprehensive and classified tax system.The comprehensive and classified tax system can balance the tax burden, ensures the life of low-income individuals and adjust high-income individuals’ income.3.2Expand the Tax BaseIn order to expand the tax base effectively and adapt to the diversification of sources of personal income, the taxable income of the current personal income tax should include all income that can measure the tax payment ability, change the current way of being listed in the provisions of the taxable income and replace it with anti-cited provisions of non-taxable items.3.3 The Adjustment of Expense Deduction Standards, the Implementation of Tax Ind exation MeasuresFirst, the government should establish reasonable taxpayer birth billing and support of the population, the elderly, children, the disabled and housing, health care, pension, education, insurance and other deductions and their standards and adjust the standards timely in accordance with the wages, prices, etc.Second, the government should implement the indexation of expense deduction. The so-called tax indexing determines taxable income’s applicable tax rates and tax deductions automatically in accordance with changes in the each year’s Consumer Price Index thus eliminating the impact of inflation.At last, the deduction standards should be combined with price index and the increasing average wage level to ensure the taxpayer's basic living needs.。