Study On The Exemption Deducting Standard System Of Wages And Salary In Individual Income Tax

The thing that called payroll deduction from personal income tax expense maintain a minimum taxpayer cost of living as a deduction system, in accordance with the provisions of the income tax law, taxpayers in the calculation of wages, salaries should be taxable income, the wage of the costs, expenses and basic living standards, the specific deductions among countries are various, but generally speaking, there are two things in common:for one thing, cost less, which was in order to obtain taxable income and must pay the costs; for another, it also include the livelihood of deduction:if the taxpayers want to maintain himself and family life, they were supposed to pay related fees. Expense deduction, in essence, is to enable the taxpayers to pay taxes according to their real ability to pay taxes according to law. By forcing the taxpayer bearing the cost of development and maintenance of the basic cost of living and to give tax deductions obtaining proceeds of them, a net income for the tax subsistence basis, the basic principles of non-taxable, the amount of tax fairness and tax principles have been specific performed.China set up payroll deduction system cost, the purpose of which is to adjust and address social and economic development in the relationship between the various elements and contradictions, for the entire social and economic development. Increasing revenue and adjusting the income distribution to narrow the income gap between individuals, to achieve equitable distribution of income is personal income tax of the two basic functions, these two functions interact each other, mutually exclusive, but at different times have the focus. Currently, personal income gap is too large; the disparity is obvious one contradictions of China’s overall social and economic. Personal income tax in the regulation of income distribution as an important lever of economic development should be adapted to the needs of society as a whole, the legislative function in the personal income tax positioning, should focus on the adjustment of income distribution, to strengthen its regulatory function of income, ease the distribution of income disparity conflicts, and to promote coordinated social and economic development.The problems of China’s current personal income tax wage expense deduction system are the narrow deductible confines, the implementation of "differentiated" approach deduction, and the amount of the amount is lack of regional differences. On the one hand strengthen the existing system of personal income tax revenue function objectively, while on the other hand, it also has weakened the adjustment of income function, nevertheless, as a matter of fact, this is not suited to the current situation of China’s social and economic development, do not meet the needs of China’s economic reform, and not being in line with international economic development trend. Therefore, faced with China’s current personal income tax for the payroll expense deduction system defects and deficiencies, from the following ways and means can the system be actively improved:improving the personal income tax expense deduction wage legislation, the appropriate widening of the personal income tax payroll deduction’s range of standards, and scientifically set of personal income tax wage expense deduction method, the abolition of the cost difference between internal and external of personal income tax payroll deduction,and never appears any differences of regions in the standard of personal income tax expense deduction.