Expense Deduction Of Personal Income Tax Law System In A Comparative Study

With the development of the economy and adjustment of economic structure, the income level of resident is improving constantly.And the Individual Income Tax becomes an important tax category gradually.Contrast to this, however, the Individual Income Tax Law has not already been fit for situation now.The experts and scholars all appeal for reforming the Individual Income Tax Law. How to reform it becomes a hot topic. There are a lot of factors influencing result of Individual Income Tax. The most important one of these I think is the system of expense deduction.This paper analyses our system of expense deduction, introduces and summarizes American system of expense deduction, and proposes the reform suggestions of the system of expense deduction.This paper is divided into four parts:PartⅠexplains the meaning of expense deduction,the necessity of reforming our deduction system,and the deep reason of its low level.Part Ⅱ introduces the history of the Chinese Individual Income Tax Law, and discusses the defect of our deduction system.Part Ⅲ describes the history of American Individual Income Tax Law, and introduces American deduction system.Part Ⅳ gives suggestions to reform and perfect our deduction system.