Distributive Justice and the Reform of China's Individual Income Tax

Both the ratios of the labor remuneration and the residents’ income are too low in Chinese national income distribution. In order to resolve this prominent problem, the Chinese authority should attach great importance to the tax adjustment for realizing the positive effect of the distributive justice. Therefore, the objective of the Individual Income Tax reform is to strengthen its function on regulating income distribution and to select the dua(composite) income tax model (to combine the global model with the scheduler model ), which should be based on the foundation of gradual increase of the individual income tax revenue. In the legislation of Individual Income Tax Law, the keys points of the substantive law construction are the perfection of the deduction system, the reform and optimization of tax rate structure; the keys points of the procedural aspect are, to construct a collection and management mechanism combining withholding at source with self-declaration, and to improve the monitor system of individual income information. The authority should also formulate work schedule of boosting Individual Income Tax Law reform, and also accelerate the modification of the Tax Administration Law.