The Problems And Perfection Of The Personal Income Tax Law On Exemption System In China

The exemption system of China's personal income tax law is a provision of the individual income tax law of China that provides a tax credit for part of the taxable income,that is to say,the pre-tax deduction is provided in accordance with the standards stipulated in the Personal Income Tax Law.Individual income tax is levied,and the remaining portion is levied on individual income tax at the corresponding personal income tax rate.It mainly exempts the taxpayer's labor income from exemption from the personal income tax in accordance with the standards stipulated in the exemption system,thereby protecting the taxpayer's basic living needs and safeguarding his basic survival and development rights.Almost all countries in the world have stipulated the system of exemption in taxation law.Although the specific content of the system is different,the ultimate goal is to reduce the tax burden on low-income taxpayers in the country.The United States'Earned Income Tax Credit(hereinafter referred to as "EITC")is a typical representative.The US EITC is the largest tax return policy for low-income and middle-income taxpayers in the United States and its local state governments.It plays a positive role in raising the income level of low and middle income taxpayers and reducing the tax burden on low and middle income taxpayers.The system is based on the specific situation of different families of taxpayers in the United States and the imbalance of economic development in different states to formulate floating personal income tax credit standards,and actively encourages poor citizens to participate in employment,which is conducive to the realization of the principle of fair taxation.There are many similarities between the US EITC and China's personal income tax law exemption system.Both are aimed at taxation policies for low and middle income taxpayers in China and the United States.The ultimate goal is to release taxpayers' tax burden in both countries and occupies a very important position in the taxation system of both countries.In view of the fact that the development of the US EITC is relatively mature,China's previous reforms of the individual income tax law exemption system have not advanced the advanced experience of the US EITC,such as the specific conditions of the taxpayer's family,the imbalance of economic development in various regions,etc.This kind of social issues are included in the consideration of reform.Therefore,the United States EITC system is of great significance for the reform of the system of exemption of personal income tax law in China.