On Establishment Of Legal System For Negative Income Tax In China

In 1748, Montesquieu pointed out that "if countries put their personal wealth and wealth of the relationship it commensurate with the appropriate words, wealthy individuals will soon increase national wealth." Personal income is directly related to the vital interests of the personal income, the state how to achieve the distribution of income in the legal system, especially in the tax system is very important. In recent years, China’s personal income tax reform, it really makes the middle-income groups to benefit, but low income people excluded; it has been committed to help the low-income people to protect the basic living standards and the minimum living security system is also criticized. Between Regions, between urban and rural areas, between the rich and poor, the phenomenon has not been alleviated. At this point we need to have a new system to solve or alleviate these problems.Freedman and other economists put forward the negative income tax to replace or supplement the minimum living security system, to give low-income people tax subsidies, to encourage low-income labor employ. This kind of tax, in fact, is a transfer payment, trying to use the personal income tax rate system to make low income people to enjoy a more equitable treatment. The idea of negative income tax is conducive to the reform of the legal system of personal income tax. The negative income tax system is not only an economic system, but also a legal system, which has important theoretical value and practical value.Based on the experience of the legal and practical experience of other countries, the paper analyzes the basic theory of the minimum living security system and individual income tax system in China, analyzes the basic theory of negative income tax, the main content and the main content, and puts forward the necessity and feasibility analysis of negative income tax.This paper is divided into four parts. The first part analyzes the basic concepts, characteristics and value orientation of the negative income tax. The negative income tax is a tax system that the government pays the income tax subsidy to the low income people who meet the statutory conditions through the transfer payment. Negative income tax is limited to low income, tax process essence is to aid the process, through the issuance of the unified collection and management of tax department, in the form of tax help and inspire people on low incomes through employment finally achieve development by themselves. The value orientation of the negative income tax is to protect the interests of the weak group, encourage the employment of labor, promote the good tax culture and balance the fairness and efficiency.The second part, with comparative research methods, main analysis the contents of the system of negative income tax and the enlightenment to china. This paper mainly introduces the historical origin, main contents and main characteristics of the "labor income tax exemption" act and the "temporary relief" act of "poor families" and the "working family tax credit" act. The negative income tax system of these countries is to establish and safeguard the idea of "self support", to develop and implement the negative income tax system, and to realize the tax law culture.The third part, through the discussion of the necessity and feasibility of the construction of the negative income tax system in China, demonstrates the practical basis of the negative income tax system in China. Due to the existence of many problems in the minimum living security system, low income people can not enjoy the benefits of the individual income tax law reform, the lack of social security function of individual income tax law, the construction of the negative income tax system has the necessity of reality. And the enhancement in the level of fiscal capacity and fiscal, changes in household income taxation procedure, protection of traditional culture, the negative income tax system is constructed to provide the feasible conditions.The fourth part is the key part of this article, researching on the concrete path of the negative income tax system in our country. In the macro, the individual income tax system in the construction of negative income tax system, unified coordination of the tax elements, so that China’s personal income tax cover the positive and negative income tax, the low income class are included in the tax system, the central and local tax system strengthen social security for the negative income tax. Coordinate the relationship between the negative income tax system and the minimum living security system, and gradually replace the minimum living security system with the negative income tax. Following the reform of real estate tax and free trade area, the eastern, central, western developed, less developed, impoverished urban and rural areas can reform.In the substantive rules of design, it advocates to expand the scope of the subject of tax payment, clearly defines the minimum income standards, develop progressive negative income tax. Regulation Incentive employment legal measures to the local tax authorities become the main executive body. In the rules of procedure, it is recommended to the tax authorities as the main body, improve the personal tax information collection and management mechanism, and improve the tax inspection mechanism.