Research On Adjustment Of Personal Income Tax Expense Deduction System

China has proposed personal income tax system earlier, but it did not put into practiceuntil1980. In odder to adapting to social development, personal income tax has beenadjusting since it was implemented. It is better to implement its policy function. In recentyears, the reform of personal income tax focused on income distribution adjustment,aiming to narrow the gap between rich and poor, and to be fair taxation. In the era ofcomplex economic situation, the global financial crisis storm came first, and then theoutbreak of the crisis of national sovereignty followed. Countries have introduced somerelevant economic policies because of the ups and downs of economic trends, includingour country. In the face of new challenges as well as the inherent problems, the reform ofpersonal income tax pay attention to the basic elements of the tax and expense deductionsystem. And with due consideration to fairness and efficiency, change the part which doesnot meet the current development.Among many problems which exist in the personal income tax system, this paperselects the expense deduction system as the research object. The paper analyzes problemsin the the synthesis-classification-combined personal income tax system, beginning withthe taxation ethics. For example, the range of expense deduction system is narrow andlivelihood expenses consider few element; Expense deduction standards does not matchregional economic development. Then in the background of “direction of thesynthesis-classification-combined personal income tax system”, drawing on internationalexperience, discuss the solution of personal income tax expense deduction system’sproblems. Firstly, we must adhere to the reform direction of the classified comprehensivetaxation system. Then this paper put forward some specific suggestions for deduction ofexpenses. For example, i analyze residents’ living conditions in the Beijing, Sinkiang,Shanghai and Guangdong. Then propose the suitable deduction standard cost for this fourregions.