The Expense Deduction Research Of China's Personal Income Tax On The Comprehensive Assessment System

With the poverty gap in China is increasing,the personal income tax as the most effective and direct government regulation tool,should strengthen in adjusting income distribution at the same time,raising fiscal funds and achieve the effective regulation of income distribution and tax equity.Expense deduction is the most important part of the system of personal income tax,which directly affects the tax burden of the individual income tax,and has important influence on the equity of the tax burden.The personal income tax expense deduction system should fully consider the specific conditions of different tax deductions,reasonable design,play a crucial role in the regulation of income distribution,control high income etc..However,because of China's personal income tax expense deduction is depend on the unreasonable taxable system and the institutional framework for individual units,results in the problems of unfair tax burden and damage efficiency,failed to achieve the tax regulation.So the expense deduction reform is imperative.In the 18 th CPC,China clearly committee to gradually establish a comprehensive classification and the combination of personal income tax,in 2016 the National Treasury Secretary Lou Jiwei NPC and CPPCC reporters also pointed out that simply raise the threshold to solve the drawbacks of current our country tax fundamentally,to promote the reform of individual income tax,the classification and synthesis for the stage the final goal,achieve "step by step" and "comprehensive levied".This paper is based on the above background,in many problems in the personal income tax system,the selection of the cost deduction system as the research object.From the point of view of its function,through listing the different circumstances of income tax burden of taxpayers,tax loss rate calculation simulation method to analyze China's deduction of unfair tax burden,"the upside down" and inefficient phenomenon is rooted in the currently used classification system on taxation mode and unreasonable way of reporting the tax payment period.In the description of the existing disadvantages of our expense deduction mode at the same time,the introduction of outside the box,introduced the United States and Britain the expense deduction system.Due to the United States,Britain,the cost of the deduction system is very mature,comprehensive,pay attention to fairness,the cost of our country to deduct the reform of reference has important significance.So this paper costs to their classification,different project cost deduction deduction amount,followed by the modification of the standard setting and special deductions policies and principles are made in detail,finally summarizes the comparison of the United States and Britain in the two developed countries in terms of cost difference deduction system,analysis of different policy reference limitations and difficult to implement.Finally,based on the situation of our country,put forward specific proposals of China's personal income tax expense deduction reform: 1.Our deduction system reform should be the ultimate goal of the Declaration on the basis of taxation system and the family,the cost of scientific classification,hierarchical deduction,and standard deduction of costs the cost and improve the special project expense deduction,of living expense deduction standard should follow the principle of constitutional government;2.China can use the classification and comprehensive collection mode of transition,the wage and salary income,production and business income,income from remuneration has strong continuity or recurrent income included in the consolidated income tax project to develop a unified,applicable to progressive tax rate;the transfer of property,royalties,interest,dividends and other income,according to the proportional tax rate Implementation of the sub levy.At the same time,the gradual implementation of the reform of the declaration,and according to the design of the transition period of China's personal income tax expense deduction levy process.In order to analyze the expense deduction system reform effect,according to different income,different family burden angle,relief effect,tax reform proposals on the assumption on the analysis of the regulation of tax fairness and income distribution are calculated.3.Improve the supporting measures of administration of our country through the implementation of the non-cash settlement,strengthening personal income tax information construction,establish a sound social credit system,safeguard China's individual income tax expense deduction system reform implementation.