Legal Issues Of Family Income Tax System

From the National People’s Congress and the Chinese People’s Political Consult Meeting in2012to The Third Plenary Session of the18th Central Committee of the Communist in2013, social security and income distribution has always been the hot issue. The Third Plenary Session of the18th Central Committee of the Communist has mentioned deepening the reform of taxation and social security systems clearly, the goal of this reform is to promote social justice, and improving people’s well-being, Present, expand social security, improve personal income tax adjustment mode, control the national income gap, maintain a fair distribution of economic benefits are the material basis for achieving social justice.While personal income tax increases with national income continued to grow, its regulatory function of the income gap was due to the personal income tax system defects are weakened. In addition, the aging of society brought pressure to make future pension taxpayers may bear a heavier tax burden, social inequality will become more apparent. Resolve these issues need to re-examine the functions of the family, the family bears the responsibility for raising children and support for the elderly, although due to the smaller size of the modern family, personal pension and other causes for the rapid development of the traditional family pension function is weak, but still can not ignore the family pension functions.As the basic unit of social structure, a family has to take responsibility for its members, but our personal income tax only takes into account the individual’s income level, not the financial burden of the taxpayer’s family. There are many home-state personal income tax units internationally. There a large literature on the grounds of personal income tax reform should move towards the family unit levy income tax. Family tax unit, reflected in the design of the tax system is to implement the principles of the amount of energy taxation, give full consideration to the taxpayer’s income tax system is designed with the family burden. But our tax system to introduce families facing a great many problems, the purpose of writing this article is to find a path suited to China’s personal income tax reform realities.The first part of this article makes a brief introduction on the meaning and features of the family tax system, with emphasis on the taxpayer’s legal rights and obligations of family income are discussed, and finally discuss the basic principles of tax law in the family income tax system. The second part discusses the real obstacle of recommending the family income tax system, primarily to clarify the unequal rights and obligations which caused by regional economic differences, family structure differences etc. The third part is about the family-related provisions of other countries and its reference, focusing on the United States and Japan the two countries around the family burden prescribed tax deduction, tax incentives and other policies for the fundamental rights of taxpayers and their family members introduced protection. Currently, the personal income law of the United States and Japan, as well as for the protection of the taxpayer deducted families and their family members provisions relatively perfect, we can learn from the lessons of the existing design suitable for our family income tax system. The fourth part is about the direction of reform, this part is the focus of the full text. Because of the personal income tax and social security systems are directly associated with the income and expenditure of individual citizens and families, so we could make a common reform, that is personal income tax system echoes to the social security system, transforming some pre-tax deductions into the social security welfare benefits, then the local government could according to the region’s economic development to decide the payment of social welfare benefits, this approach can not only balance the economic development of our broad geographic big gap unequal tax burden, but also enable taxpayers to truly feel the relevance of tax and social welfare, and to actively encourage taxpayers to pay taxes. Finally, the article is discussed the legal issues on the reform in which based on the analysis for further. In order to ensure standardization of the personal income tax law, the stabilization and protection of authority and must adhere to focus on tax legislative power, so we should modified new personal income tax law by the Legislature, while the unified local government authority to develop social security welfare benefits, formulated by the local government in line with local economic and cultural development of the population, such as the payment of welfare benefits to match the way personal income tax reform, which resolve differences of regional economic imbalances brought about the tax burden.