Research Of The Reform Of Personal Income Tax Expense Deduction In China

In China personal income tax start from scratch,with nearly 40 years of development scale of tax revenue is more than one trillion yuan,become an important source of tax revenue,at the same time as one of the most important adjustment tool,income expense deduction reform of personal income tax has always been the focus of attention.improve the reasonable expense deduction system is the important foundation to realize tax income redistribution function,but the drawbacks of the expense deduction standard in practice in our country at present is more and more prominent,the expense deduction standard reform is imminent.By reviewing the tax all previous reform history and analyzing the current situation of expense deduction,and then compare analysis the expense deduction system present situation of the foreign advanced countries : the United States,Japan,this paper argues that the current income tax expense deduction has the following problems: first,the standardization of expense deduction ignores the real burden of taxpayers,failed to reflect the family structure actually,second,under the current adjustment mechanism of the expense deduction,respectively before and after deduct exist the problem of the deficiencies and deduct too much,lead to unreasonable fluctuations in tax revenue at the same time,the third,the not fixed interval adjustment model ignores the impact of inflation,cause the increase of personal applicable tax rate grade.Fourth,the type of expense deduction is not complete.On the basis of analyzing the existing problems,put forward the reform of income tax expense deduction advice: first of all,set out reasonable single man's living expense deduction standard,confirm expense deduction according to the population burden,secondly,design the expense deduction according to solid deduct the cost of living,to applicable the taxpayers who has to pay more and bears heavy costs,to ease the burden,the third,to adjust the expense deduction year after year,to avoid the disadvantages of a longer interval adjustment,fourth,set up special deduction.