Research on Personal Income Tax System Reform from the Perspectives of Equity and Efficiency in China

Abstract

The paper focuses on the problems and improvement suggestions in the process of personal taxable income. China's current personal income tax, whether from the perspective of tax fairness or efficiency, is contrary to these two principles. Therefore, the authors believe that, for the improvement of personal income tax, China should take into account all factors, from the principles of fairness and efficiency, combining practical problems, adjust the system, make the income tax better promote China's economic development. By theoretical analysis, based on the tax theory of fairness and efficiency, the paper analyzes the tax deduction, charge mode, tax apply and other issues, provides a theoretical basis and reference for adjusting China's personal income tax. Secondly, using the method of comparative induction, combined with the tax system reform, the paper proposes China's personal income tax adjustments recommendations.