The Absence Of Substantial Justice Of Individual Income Tax Law

Ignoring people's different economic and social status, the formal justice of Tax Law demands that all people are treated equally from the perspective abstract legal personality.For instance, different tax payers are demanded the same deduction and tax rate. Despite the different situations, the substantial justice of tax law demands the formulation and implementation of tax law should have adequate consideration of the difference in tax payers' income level, social status and their financial burden. In order to achieve fairness among taxpayers, different tax law regulations should be formulated for tax payers in different situations. Considering the family financial burden in individual income tax law which requires that the different situation of tax payers is distinguished, seems to be unfair, however, it accords with the requirement of substantial justice as it can reach the fairness of results and protect the right of existence of the tax payer and his dependents.This paper contains four parts. The first part prepares the theoretical base and the necessity of consideration of family financial burden in individual income tax law. This chapter analyses the value of individual income tax law and points out that the value should contain formal justice and substantial justice. Then it analyses the family financial burden which restrains the tax credit ability of tax payer. It concludes that the margin of tax payer's tax credit ability is the right of existence. Finally this part points out that the substantial justice of tax law has compatible and contrary relationship with tax payer's family members' right of existence. That is to say, the substantial justice of tax law requires the individual income tax law to protect the existence right of tax payer's family members, meanwhile requires the individual income tax law to make strict restrictions to prevent the abuse of existence rights.The American individual tax law which has adequate consideration of the family financial burden is a mature law system. Our country can adopt the regulations reflecting family financial burden to perfect our individual income tax law. The second chapter makes a detailed analysis of the substantive and procedure law reflecting the family financial burden of American individual tax law. The writer adopted the research outcome of the predecessors and collected some first-hand material to prepare for the comparative research. The American individual income tax law uses the comprehensive income tax mode and has certain regulations of the taxable income, filing status, tax rate and tax credit. To have understanding of each tax payer's family financial burden, Internal Revenue Service needs to collect complete information of tax payers and form strict inspecting system to prevent tax payers from avoiding tax. These regulations assure the fairness of tax, but have negative effects on the efficiency. To protect the right of tax payers, Internal Revenue Service aims to serve for tax payers.The third chapter makes a reflection on the lack of consideration of family financial burden of the individual income tax law of our country. It points out the parts which lack of consideration and analyses the effect.In the fourth chapter, using the comparative study method, the writer adopts the effective regulations of American individual income tax law to perfect the individual income tax law of our country. In the substantive law, the comprehensive income tax mode should be applied, the tax base should be regulated and the tax rate should be optimized. Besides, as we have different family structure, the writer gives special opinions of filing status. In order to have complete information of tax payers, the government should change the way of thinking to take active administration and apply the strict inspecting system to make sure that the individual income tax law can be obeyed to achieve the goal of adjusting income distribution.