From The Sub-declaration To Declare A Comprehensive Declaration And Then Family

The unit of Individual Income Tax could be family or single person or both the familyand single person, and the choice will has an important impact on tax burden of taxpayers,therefore, how to determine the filing unit is one of the essential issue of personal incometax system.Currently, according to the individual income tax of our country, the filing unitdefined as the single person. The advantages of this approach are the representation of theneutrality of marriage and easy operability, but we should pay attention to the problem thatpersonal ability of bearing tax depends not only on level of their income, but also theirfamily situation. Whether the individual married and whether he has elders and kids to risewill have a great influence on him tax burden capacity. So only when considered theirfamily burden before we design the IIT system, we can measure the real burden ability oftaxpayers. Therefore, establishing the new personal income tax system with a family unitgradually rising in voice and it’s quite different with the personal income tax developmenttrend of European countries. This difference reflects the divergences on fiscal situation andsocial development between China and the EU.The chapter I focus on the domestic and foreign present research situation and mainlydescribe the background, importance, methods and the research status at home and abroad.The domestic part majorly introduced the research from the tax law, marriage neutral,supply of labor and the implementation route; of course, there are some opponents whohave the different views on the family unit. In the international research part, we will paymore attention to the analysis for disadvantages of family unit, the different elasticity ofdifferent types of labor supply and the research of how to strengthen the on taxcompliance.The chapter II introduces the theoretical basis，advantages and disadvantages offamily unit. Base on the perspective of sociology and public finance and take the family asa whole, we can found the family unit will be helpful to establish the new style socialrelationships and achieve the fairness of tax burden. However, from the view of marriageand family, the family unit will affect the personal neutrality on marriage and support behaviors, then it would result a series of ethical issues.Chapter III introduces the history and current situation of individual income tax inUSA, Britain, Japan and South Korea. America taken family as unit for a quite long time;and there were a watershed in1990as Britain changed the filing unit from family toindividual. As USA and Britain are the advanced countries in field of tax theory andpractice, so I choose those two as the example for analysis. In addition, I also chose SouthKorea and Japan as reference as above two countries have the similar cultural and familyvalues.Chapter IV is a thorough analysis of the chapter III. It target to analyze which aredeterminants when we choose the filing unit of individual income tax, the analysis focuson the family structure and the public financial situation. We found the family structure hasundergone tremendous changes over the past thirty years since the family planning policy.At the same time, China’s financial situation is relatively stable, while the share of personalincome tax in public revenue is really low. Combined with the tax elasticity of labor supplyand the taxpayer’s voice, we can draw a rough conclusion.Your will find the analysis for troubles we may meet on the way to family unit in thechapter v. The rising of tax cost and complexity of family definition will be the mainproblem. Considered the preference of cash payment and the complex family propertyrelationship in China, it will take a long time to achieve our targets. In this part, weanalyzed and try to give some preliminary solutions for above problems.Above all, it will be a long and complex process to promote the personal income taxfiling unit transferred from single person to the family in China, we must achieve transitionfrom partial filing to general filing firstly and draw lessons from the experiences of othercountries, then advance reform gradually and put forward the scheme at the right time.