The Study Of Perfecting Expense Deduction Standard Of Iit In Our Country

Personal income tax in our country as the important categories of taxes, its main function isto control the employee’s income gap, reflect tax fair principle. Along with the rapiddevelopment of economy of our country, the residents income source increasingly diversified,different areas, different groups of income gap is also more and more big, the originalpersonal income tax law already can not adapt to the current economic situation, it is urgent toperfect the reform. Reasonable design of personal income tax expense deduction system canreflect the taxpayer’s real taxable capacity as well as to meet the conditions of the taxpayer ofthe specific care, so it has a influence on individual income tax regulation strength and effect.In order to design new reform plan of deduct，this paper has studied deduction system oflots of countries all over the world，such as America，Franee，Canada and so on;then preparethe differences between these countries，design new deduction system based on the Chinesenational condition.The new deduction system which the paper designed is:Firstly， dividing thetax Payers’ income into two parts: comprehensive income and classificationincome;Seeondly，designing the essential expense deduction;thirdly， determining livingexpense deduction;lastly， making the deduction relative with CPI.