Study On The Legal System Of The Labour Income Tax Credit

After eight years of hard work,our country completed the historical task of overcoming poverty in the new era by 2020 as scheduled.Under the current standards,all the poor people in rural areas were lifted out of poverty,and all the poor counties took off their hats,eliminating absolute poverty and regional poverty as a whole.How to consolidate the historical achievements of overcoming poverty will become a new historical subject.In view of the shortcomings of our current system,the legal system of labor income tax credit introduced in 1975 may be worthy of our reference.The legal system of labor income tax credit is a kind of welfare policy which is manifested as tax mode.His dual attributes make it play a unique role in balancing efficiency and fairness.The purpose of this paper is to explore the source,operation mode,theoretical basis and practice of the legal system of labor income tax credit,and to seek the path of constructing the legal system of labor income tax credit in accordance with the national conditions of our country.This paper is divided into four parts:The first part of the labor income tax credit overview.Labor income refers to the comprehensive income with labor nature stipulated in the personal income tax Law.The tax credit for labor income is a system derived from the theory of negative income tax.The system provides taxpayers with a credit for labor income.If the conditions are met,the credit can be deducted directly from the original tax amount.When the original tax is less than the credit,the difference can also be subsidized.In this way,low-income groups can earn more real income and improve their living standards.From the national level,the relationship between fairness and efficiency is also taken into account.The second part introduces and evaluates the legal system of foreign labor income tax credit.The United States,Britain,Canada and so on have carried on the labor income tax credit practice.Through the practice of these countries,it can be found that the key to the success of the project is to scientifically determine the population and the object of credit,to design the exit mechanism reasonably and to pay attention to the labor incentive to the low income group.The third part is the necessity and feasibility of constructing the legal system of labor income tax credit.From the point of view of necessity,the existing social security system such as minimum living security in China has inherent defects,and the tax credit system of labor income can be supplemented.In addition,the tax credit system of labor income is also an innovative mode to consolidate and expand the achievements of overcoming poverty,and at the same time,it can promote the fair reform of social tax burden.From the feasibility point of view,the policy and financial support for the poverty problem,the poverty alleviation and minimum living standard work system and the relatively perfect individual tax collection and management system can protect the construction of the system.The fourth part envisions the model of the legal system of tax credit for labor income in China.It is suitable for the national conditions of our country to stipulate three different credit ranges under the influence of the two factors of labor income and the number of dependents on the basis of the link with the existing minimum living security system and the individual income tax system.The final credit is determined according to the credit range.In addition,we should improve the corresponding supporting mechanism.