Studv On Personal Income Tax Deduction For Children’s Education Expenditure

The relevant provisions of individual income tax has always been the focus of the reform of individual income tax in China.From 1980 to September 2018,China carried out six personal income tax reforms and made five adjustments to the basic deduction of expenses,each of which raised the" threshold" to varying degrees.But from five times adjustment,expense deduction scope includes basic and three insurances,the deduction of expenses only considered the basic life safeguard taxpayers,not give full consideration to the taxpayers of the difference of individual responsibility and duty,ignoring the taxpayer the difference of the burden of the people’s livelihood,such as spending on education,health care,housing rent,etc.From this point of view,the expense deduction scope is relatively narrow and single.On December 20,2018,the ministry of finance,the state administration of taxation and other relevant departments drafted the interim measures on special additional deductions for individual income tax(draft for comments),and began a two-week consultation with the whole society on the official website of the ministry of finance.And the final six special additional deduction policies will be determined in the form of legislation in the state council[2018]no.41.The formulation and effectiveness of the special additional deduction policy has expanded the scope of expense deduction,raised the state’s attention to the livelihood of taxpayers,and increased their "sense of tax revenue".This paper mainly focuses on the special deduction policy for children’s education in the new round of individual income tax reform.From a research perspective,policy for deduction for children’s education expenditure was proposed in 2018 for the first time and the related research is less,so angle of view is new.From the point of the research methods,simulation calculate the tax deducted from their children’s education policy effect and income redistribution effect,the method has a certain credibility,but also the data has certain hysteresis,research conclusion has certain error.Paper main research content is as follows:using quantitative research method,respectively,simulation of current policy on the different dimensions of tax effect and tax redistribution effect,adopting qualitative research methods,analysis of the current policy on the system level and the problems existing in the implementation process,drawing lessons from foreign experience in related policies at the same time,in order to further improve their children’s education in our country to deduct the rationality and feasibility suggestions for policy.Firstly,the following conclusions are obtained by adopting quantitative research methods:(1)in the whole sample,the difference between tax reduction effect and income redistribution effect is small.(2)within the range of different family types,the difference between tax reduction effect and income redistribution effect is small.(3)in different regions,the tax reduction effect and income redistribution effect are quite different.The above conclusions(1)and(2)positively affirm the rationality of the current policy provisions,and(3)reflect from the side that there are certain problems in the implementation of the policy provisions.Secondly,using qualitative research method,the following problems are found in the current policy:unclear provisions on deducting items;too simple deduction standard setting;narrow coverage of beneficiaries;unreasonable provisions for the deduction of the effective period;challenges on tax collection and administration.Furthermore,on the basis of summarizing and sorting out relevant foreign policies,the common ground is analyzed,and the relevant policy experience is learned by combining with the policy content of our country.Finally,in view of the conclusions obtained by using quantitative analysis method and the problems found by using qualitative analysis method,the relevant improvement measures are put forward.Including further details of deductible items and non-deductible items;to formulate different deduction standards;subsidies for some taxpayers;include the early education expenses of children aged 0-3 years into the deductible scope;improve other related policies,such as establishing reward and punishment mechanism,and establishing information sharing platform.