A Brief Discussion on the Impediment and Resolution of Individual Income Tax

Abstract

Since the new adjustment in 2018, the personal income tax threshold is still hotly discussed. This paper believes that there are few deductions items, low deductions amount, frequent adjustments to the threshold, and the growth rate of taxpayers' personal income tax is higher than the GDP growth rate over the same period, which inhibits the momentum of personal tax on consumption. After reviewing the critical value of previous adjustments to the threshold, it is recommended to expand the deduction items, increase the deduction amount, and pay full attention to the legislative foresight and stability.