Taxation and governance in China : a comparative analysis of tax system between China and the United State.

Abstract

The personal income in the countries whose tax system takes direct tax as the main

body is far larger than those whose tax system takes indirect tax as the main body,

however, the tax burden is smaller. This is mainly due to differences between

different tax systems. Therefore, we can learn that, there is a connection between tax

system and a country's personal income. As to Chinese, next move of tax reform

should concentrate on increasing the percentage of direct tax, promoting the

efficiency of tax collecting and management system, changing individual tax system

and consummating property tax system.