(1) Advantages: Comprehensive consideration of the taxpayer's ability reflects the principle of fairness in taxation.
(2) Disadvantages: the collection and management is complicated and requires high tax authorities.
China's personal income tax has always adopted the method of classified management, dividing income types into different categories and calculating and paying personal income tax respectively.
(1) Disadvantages: Taxpayers' income is considered alone, but the actual tax payment ability of taxpayers cannot be comprehensively considered, and the principle that tax amount can afford tax cannot be embodied. Second, the classification system only stipulates the pre-tax deduction of personal income, which cannot take into account the family burden of different taxpayers and cannot reflect the principle of tax fairness.
(2) Advantages: simple collection and management.
At present, the construction of personal information system in China is not perfect, and it is difficult for tax authorities to fully understand personal income. Personal integrity evaluation system is not popularized enough, and the deterrent effect of personal tax arrears or punishment records is limited; The defects of various systems themselves have also caused certain obstacles to the collection and management of tax authorities. The comprehensive income tax system is difficult to implement. Therefore, the overall goal of tax reform during the Thirteenth Five-Year Plan period is to establish a personal income tax system that combines comprehensiveness and classification. Give consideration to fairness on the basis of giving priority to efficiency.