The Research On The Deduction Of Basic Livelihood Expenses Of Personal Income Tax In China

In 2018,China's newly promulgated "Personal Income Tax Law of the People's Republic of China" made a large-scale reform of China's current individual tax system.In this reform,in addition to including a part of the labor income to collect the syndrome,the optimization of the tax rate structure and the addition of several special additional deductions,including the basic living expenses deduct ion standard from 3,500 yuan per month to 5,000 yuan per month.The deduction standard of the basic livelihood expenses of personal income tax is not only of practical significance,but also important for the development of financial theory.It clarifies h ow the standard of deduction of basic livelihood expenses of China's individual tax is scientifically and reasonably formulated,and has a smooth promotion of individual tax reform.Significance.This paper starts with the introduction of the concept of de duction standard of basic livelihood expenses and related theories and principles,as the theoretical basis of this paper.By reviewing the historical evolution of China's personal income tax basic livelihood deduction standard,this paper believes that al though this tax reform will adjust the deduction standard of basic livelihood expenses to 5,000 yuan per month,when China sets the standard for basic livelihood expense deduction,Ignoring the taxpayer's family factor and violating the vertical fairness o f taxation;at the same time,the standard of deduction of the basic livelihood expenses of China's individual tax is unified nationwide,and does not consider the price difference between different regions,so as to adapt to local conditions;The basic li velihood fee deduction standard for taxes still adopts an artificial adjustment method.This method is more rigid than the indexed adjustment model,and there is a certain lag.In order to solve these problems,this paper draws on the experience of the United States,Japan and other countries in this regard and summarizes the enlightenment,and puts forward suggestions for the deduction standard of the basic livelihood expenses of the dynamic personal income tax in China as soon as possible.First,the deduction standard for basic livelihood costs should be considered in the family factor to balance the tax burden between different families.Second,the deduction standard for basic livelihood costs in different regions can be allowed to float within the prescribed range to maintain the living standards of people in areas with high living costs.Third,establish an adjustment mechanism for the basic livelihood expense deduction linked to the CPI index,so as to maintain the deduction standard for basic livelihood expenses,it can closely follow the economic trend and guarantee the rights and interests of taxpayers.