On The Deduction System Of Personal Income Tax In China

The income distribution brought about by the economic development is a theoretical problem that has received attention from economists for long, and a practical problem with common concern of governments of all countries. Besides, the distribution mode of resident income also evolves from the original single distribution according to work into the combination of distribution according to work and distribution according to production factors. Therefore, the source of resident income increases gradually, and the income level also increases accordingly. But at the same time, the continuous widening gap in income distribution and the relatively concentrated social wealth distribution are becoming more and more serious. When exploring the distribution function of personal income tax, the economists worldwide basically expound centering on the efficiency and equity. The mainstream view is that the design of the personal income tax system should pay more attention to social equity when the income distribution gap affects the social stability.The reform of the personal income tax system is a transition process from the current classified income tax system to the comprehensive income tax system, so the expense deduction system of personal income tax becomes the key of the problem. This paper thus makes basic theoretical analysis on the expense deduction system of the personal income tax in our country.Firstly, this paper expounds the reason for the reform of expense deduction system and the corresponding basic framework based on the basic theoretical concept and development history of personal income tax as well as the basic concept of expense deduction system for personal income tax. This framework includes three aspects of the expense deduction system of personal income tax, namely, the tax structure mode, tax systemelements and problems existing in the expense deduction system.Secondly, this paper makes a detailed analysis of the taxation structure mode of the expense deduction tax for personal income tax. The choice of the taxation mode determines he selection range and direction of tax systemelements and implementation mechanism, making it the most basic content of the expense deduction system of the personal income tax.Third, this paper makes an analysis on tax systemelements of the personal income tax, mainly covering the selection problem of the unit of personal income taxpayers between individual and family, the taxation scope of comprehensive tax base and the problems in the expense deduction items.Fourthly, this paper further puts forward the problems of expense deduction existing in terms of current legislation and enforcement of law and the protection of the rights of taxpayers. The implementation mechanism of the tax system is crucial for judging the efficiency of the tax system. The implementation mechanism of the expense deduction system emphasizes the administrative efficiency and fairness of taxation, without which the rules of tax system elements will perform practically no function.Fifthly, this paper, based on a conclusion of the above analysis, makes clear the direction of the reform for the expense deduction system of personal income tax in our country and offers the corresponding constructive suggestions, clarifying the significance of the scientific and rational reform of expense deduction system for the taxation legalization.