Personal Income Tax Reform Under The Perspective Of Improving People's Livelihood

At the 18 th national congress of the communist party of China,the goal of ensuring and improving people's livelihood was put forward and was connected with the reform of income distribution system.Personal income tax is an important part of income distribution system,and the tax of labor income is closely related to the most ordinary workers.This paper aims,from the perspective of improving people's livelihood,to discuss the reform measures of the labor income tax system,.The first chapter mainly discusses the meaning of the improvement of people's livelihood and the relationship between the reform of the income tax and it.People's livelihood refers to the basic living conditions of the people,including the right to subsistence and development in human rights.The standards of people's livelihood and the content and goals of improving people's livelihood will continue to change with the development of society.At the macro level,the people's livelihood relationship with tax through a series of historical events show: whether in China or in the west,the people's revolution is caused by "tax crisis",people's anger because of a road to tax on its right to exist and resistance.At the individual level,taxation is associated with people's livelihood by reducing the consumption capacity of taxpayers.The essence of people's livelihood is the consumption of wealth.With consumption,people have a material basis to meet their needs.From income to consumption,individual income tax changes the amount of income that taxpayers can spend on their disposable income,which happens to be a link in the period.The combination of improving people's livelihood and public finance gave birth to the concept of "people's livelihood finance".The government bears the primary responsibility for the realization of human rights to subsistence and development.Through the operation of public finance,the government can have a great impact on people's livelihood,and the tax system as an important part of finance has the space to exert its effect.From the perspective of improving people's livelihood,there are three main points of reform:first,the reform model will be more inclined to the passive intervention mode with the core concept of "tax reduction".Second,in order to ensure the improvement of people's livelihood,it is important to uphold the principle of tax law and the principle of quantity and affordability.Third,with the development of China's economy,we should directly target the middle class as the target of reform.The second chapter mainly discusses the existing system of labor income tax in China,which hinders the improvement of people's livelihood.This paper analyzes the current labor tax system contents from three aspects: tax pattern,tax base and tax rate.In terms of tax system,our country executes the classification tax system of individual tax unit.In the case of individuals,the tax burden of different families will be different due to the differences in the structure of family income,resulting in unfair tax burden.In addition,it is impossible to measure the tax burden of the taxpayers,and the principle of burden can be violated.Salary,labor and remuneration respectively,because each has different between labor income tax expense deduction and tax rates,are under the same income,all kinds of income tax,tax injustice.In the case of the tax base,the taxable income of each labor income tax is to be deducted from the standard to determine the amount of taxable income.Whether wages and salaries,or labor,remuneration,the expense deduction system is already behind The Times request,on the one hand,is a standard line is too low,on the other hand is a lack of education,health care and other itemized deduction related to people's livelihood project.The time lag of the cost deduction system is related to the unitary adjustment and confusion of the adjustment.In terms of tax rate,the labor rate set hastwo big unbalanced income tax purpose,one is the imbalance between labor income tax purpose,the second is the payroll tax rate classes,imbalance of notch.The former causes the unfair tax burden,which is not suitable for the distribution of income in China,so that the middle and low income people bear unreasonable tax burden.The tax rate level and the level of the payroll tax show that the low income level is too much,the interval is narrower,the higher income level is less,the level is larger.This affects the cumulative effect of excess progressive tax system,income of the low-income people to adjust the centrally,caused the invalid classes,and in the case of inflation,the heavier tax level rising problems.The third chapter mainly aiming at the problem in the second chapter,this paper discusses the reform of labor income tax purpose,and respectively from the tax system mode,the system of expense deduction,tax rate and dynamic adjustment of the four aspects in this paper.In the aspect of tax reform,this paper suggests that families should be the tax payers and combine the taxable items of each labor income tax,and establish a personal income tax system combining comprehensive and classification.The "family" on income tax mainly focuses on the wealth sharing among family members from the economic perspective.In determining a "family" as a tax payment unit,it should not be rigidly attached to the family form,with the taxpayer's self-declaration as the main basis,and then the household registration information is determined.Merger of labor income tax purpose,this paper argues that,as a result of labor income in nature are obtained through labor income,its classification problems tax injustice collection mode,thus should be combined into an integrated labor income tax items.After the merger of the system contents of the taxable items,the payroll tax shall be the subject of the merger.This is because payroll taxes are the most widespread and their contribution to individual income tax revenues is greatest.In terms of expense deduction,this article through the labor theory of value and demand hierarchy theory discusses the theoretical basis of living expense deduction,it is concluded that a living expense deduction shall include all Labour needed for the production and reproduction in resources,namely the right to survival and development by residents to ensure must be all of the necessary expenses.For the determination of the deduction of living expenses,the former "income factor" and "tax face factor" should be abandoned,and the livelihood expenditure is the only basis for calculation.When calculating the livelihood expenditure,the expenditure amount of urban residents should be used as the basis for calculation.With the urban residents as the sample population,the development of urbanization can be representative today,and it can also take into account the interests of rural residents with lower income.On the choice of expense deduction method,in this paper,the deduction method is introduced and analyzed,finally think should choose reservation,deduction quota method,combining with itemized deduction standard deduction.In terms of tax system,this paper analyzes the payroll tax in low levels of set up higher progressive tax rate,is not conducive to improve people's livelihood,so should enlarge the tax rate notch of the first time,in order to spin basic tax county,with the rate from low to high,should make the tax rate notch from wide to narrow,from thin to tight,in order to achieve the purpose of taking care of low and middle income earners.Finally,this paper proposes to establish a dynamic regulation mechanism.Considering China's national conditions,we can set up indexation adjustment mechanism to be below inflation,while regional differences can be abandoned because of the large cost.For indexation adjustment mechanism,the core is to adjust the tax elements according to the CPI index.As a result,the CPI measure of inflation is particularly important.Due to the limitation of statistical technology,the deviation of CPI index to the real situation will affect the improvement of people's livelihood.On the establishment of indexation adjustment mechanism,this paper proposes to learn from the typical American index adjustment measures.The fourth chapter discusses the reform measures of various labor income tax based on improving people's livelihood.First,it is necessary to establish a comprehensive and classified income tax system,with the family as the unit,and collect the taxable items of labor income.During the transition period,the system of liquidation of the year-end settlement can be introduced.As for the proposal of the fee deduction system,it is necessary to reasonably determine the standard for the deduction of living expenses,and combine the standard deduction with the sharingdeduction.In terms of tax rate setting,it is based on the payroll tax rate table.With regard to indexation measures,this paper proposes to consider China's low inflation situation and adopt fixed rate adjustment mode to reduce the system cost.And further reform the CPI index to improve the improvement of people's livelihood.In addition,the establishment and operation of indexation adjustment measures should always pay attention to the principle of the tax law and improve people's livelihood as the guiding ideology of the personal income tax law.