Mixed Tax System Under The Personal Income Tax, Net Of The Cost Of Institutional Research

Chinese individual income tax had been imposed in 1980,and reformed in 1993.The reformed individual income tax had played an important role in increasing government fiscal revenue and regulating income distribution relationship. However, as further development in Chinese economic, the individual income resource hadn't been single any more. Meanwhile, the gap between citizen revenue had been bigger and bigger. Under above situations, individual income tax can't play an important role as the same as before and there were some problems exited in deduction system. There is no doubt that the system should be reformed as soon as possible, which is also the paper supposed to study on.There are some problems existed in deduction system, such as without considering the inflation, the deduction for foreigners is over than the inhabitant taxpayer. All of these problems against the tax justice principles and tax national treatment, which should be solved in nearing tax reform.In order to design new reform plan of deduction, this paper has studied deduction system of 18 countries all over the world, such as America, France, Canada and so on; then prepare the differences between these countries, design new deduction system based on the Chinese national condition.The new deduction system which the paper designed is:Firstly, dividing the taxpayers' income into two parts:comprehensive income and classification income; Secondly, designing the essential expense deduction; thirdly, determining living expense deduction; lastly, making the deduction relative with CPI.