Tax Mode Conversion Based On Family Expenses Deduction Of Personal Income

The tax mode and the expense deduction as an important of personal income tax system, impact on the size of the tax burden on the taxpayers directly. Comparing with developed countries, China’s tax mode and the expense deduction of Personal Income Tax System existing some problems, there are the classified mode unreasonable, contrary to the principle of tax fairness, expense deduction poorly designed and the inefficient tax collection and other issues. These lead to the circumstances that the same income family has the different tax burden. Personal income tax system from abroad mode, developed countries mainly adopt the pattern of classification consolidated income tax expense, the expense deduction includes necessary expense deduction, livelihoods expense deduction and special charges, and family as the unit, this ensure the social justice in certain ways, distribute the income disparity. Therefore, China should learn the favorable experience of developed countries and combine with our national condition, reform income tax deduction system.The article begin with the basic theory of personal income tax system mode, define the concept, clear the meaning, classification and establish the principle of tax mode, compare of all kinds of tax mode, introduce the basic content, analysis the effect and the coordinating with the personal income tax system, newly introduce family expenses deduction. Describes theoretical basis of the family as a unit levied, namely six deduction theory, theory of the two sectors of the national economy and optimal tax theory and other family expense deduction on the basis of theoretical. Analysis the present situation and problems of personal income tax, found many problems in our system of personal income, such as the classification of the income tax system is unreasonable, contrary to the principle of tax fairness, expense deduction poorly designed and inefficient tax collection and so on. Through analysis other countries’ personal income tax system mode and the manner of expense deduction, learn from their advanced practice and experiences; Using regression analysis of the data to analysis and simulate the family’s data, obtained the actual cost,and further,"the family as a unit cost charged" and "the individual as a unit cost charged" produce different tax burden on the taxpayers, combine with China’s national conditions to propose the measures to improve the personal income tax mode and the corresponding measures, namely using the comprehensive classification income tax system mode to reflect the real income of the taxpayer and the tax capacity, to implement provide scientific and rational suggestions for the family unit levy.