Personal Income Tax Policy in China and the United States: A Comparative Analysis


Hua Xu is an assistant professor in the Department of Political Science and Public Administr tion of Auburn University at Montgomery. His research and teaching interests include public financial management and fiscal policies, political economy, public organizations, comparative public administration, and research methodologies. He received his master's degree from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin and is doctoral degree from Rutgers University-Newark.

Huiyu Cui is an associate professor in the School of Finance and Taxation at Dongbei University of Finance and Economics in Dalian, China. Previously, she was a visiting scholar in the School of Economics at Tiburg University, the Netherlands. Her research and teaching interests include public finance and economics, taxation and comparative tax policies, and budget reforms in China. Her work has appeared in several major Chinese journals in public finance and budgeting.


Personal income tax has grown in importance in China’s revenue system. Revenue from personal income tax was more than 2 trillion RMB yuan for the first half of 2008, a 27 percent increase from the previous year. And while similarities exist between China and the United States, distinctive features separate the two. Hua Xu of Auburn University at Montgomery and Huiyu Cui of Dongbei University of Finance and Economics underscore the need for equitable personal income tax reform in China. Using lessons from the United States, an agenda for future research on tax policy is outlined.