Research On Expense Deduction Standard Of The Individual Income Tax In China

Individual Income Tax as one of the most important categories of taxes undertakes to adjust income distribution while raising fiscal revenue. Also the expense deduction standard of Individual Income Tax is the foundation to achieve regulation, so it is very important of the expense deduction standard to adjust income distribution. Although our country has adjusted the Individual Income Tax expense deduction standard several times, it didn't solve problems fundamentally. The conclusion is that the current single expense deduction standard already can't adapt to the different conditions. The expense deduction standard should fully consider the principle of burden, and attend to the ability of the whole family. Only in this way can fairness be achieved.This paper consists of five parts.The first part is an introduction about the main problem and review including previous researches on Individual Income Tax expense deduction system theory, the framework, possible innovations and direction of this paper; The second part focuses on the overview for the Individual Income Tax status in China by introducing the development, orientation and status of Individual Income Tax; The third part is theoretical analysis of the Individual Income Tax expense deduction standard; The fourth part summarize the problems of expense deduction standard in china; The third and the fourth part summarize the features of the Individual Income Tax law in developed countries, and find out our weakness by comparing with the expense deduction system of the United States, Britain, Germany, Japan and other countries, and provide reference and experience for improving our Individual Income Tax system; The fifth part is countermeasures on the reform of the Individual Income Tax expense deduction standard in China.This paper mainly analyses various problems and irrationality of the current tax system by using statistical data and empirical analysis methods. Meanwhile, this paper puts forward suggestions by the analysis to the current system and proposals the developed countries take for improving the tax system, promoting the tax administration smoothly, and achieving the benign progress in China.