Research on Deepening the Reform of Individual Income Tax System under the Concept of Common Prosperity

Abstract

Common prosperity is the essential requirement of socialism, and tax policy plays an indispensable role in promoting common prosperity. Although the current individual income tax system already contains some elements of "common prosperity", individual income tax still needs to be further reformed in the process of promoting common prosperity and should play a greater role in adjusting individual income distribution. In the process of realizing the goal of "limiting high-income, expanding the middle-income and improving the low-income", individual income tax should balance the contradiction between the labor income tax and the poor tax burden of capital income, strive to improve the middle-income groups included in the scope of the system, enhance tax awareness and tax compliance, strengthen personal tax anti-avoidance management by using big data, promote institutional fairness, further reduce taxes on low-income and increase additional deductions to improve the payment ability of low-income people, and play a good role in the regulation of direct taxes.