Research On The Impact Of The New Individual Tax Reform On Family Education Expenditur

On January 1st,2019,China’s personal income tax system ushered in the implementation and landing of the New Deal.A major novelty in the new income tax system is the addition of six special additional deductions,including two educationrelated deductions-children’s education and continuing education.Under the tax reduction policy of the new individual income tax reform,residents’ income has been increased to some extent,and residents’ consumption has been stimulated.On this basis,the expenditure of family education has been promoted.In July 2021,the Ministry of Education proposed the double reduction policy to relieve the study pressure and homework pressure of primary and middle school students,ban extracurricular tutoring for subject education,and strictly control non-subject education guidance.The policy aims to reduce the pressure on students through administrative means,while guiding the overall environment of education to develop in the direction of non-disciplinary education and quality-oriented education.Under the background of the new individual tax reform and the "double reduction" policy,the individual income tax system not only needs to classify and refine the deduction categories related to education,so as to improve the policy efficiency of special additional deduction;At the same time,it is necessary to guide and change the concept and direction of family education through the future reform policy of personal income tax in combination with the double reduction policy,so as to better implement the policy.Therefore,based on the opportunity of the new individual income tax reform in 2019,this paper studies the impact of the new personal income tax policy on family education expenditure,and puts forward new directions and suggestions for future individual income tax reform.This paper finds that the new individual income tax reform in 2019 has a positive impact on family education expenditure as a whole,and the tax reduction brought by the reform can promote the increase of family education expenditure.The specific heterogeneity analysis of different dimensions shows that the reform effect in urban areas is significantly better than that in rural areas,and the reform effect in eastern and central regions is better than that in northeast and western regions.The impact on the expenditure of subject education is greater than that of non-subject education and continuing education.At the same time,the difference between different expenditures in urban areas is greater than that in rural areas.This shows that although the individual tax reform has a positive impact to a certain extent,the promotion effect of the reform is not completely significant,and it cannot play a significant impact due to the objective influence of regional differences,the particularity of expenditure categories and other factors.Based on this,this paper believes that the current individual income tax reform still needs to further refine the policy,in order to deepen the implementation effect of reform,and with the double reduction policy,to play a guiding role in the change of expenditure direction of family education.First,individual income tax as a whole still needs to be further reformed in terms of basic deduction and collection mode,and gradually realize dynamic and modernized collection and management of basic deduction.Second,in order to promote the development of education and guide the implementation of the double reduction policy,the amount of education deduction for individual income tax should be increased,the subject expenditure and non-subject expenditure should be differentiated,and the family collection model should be introduced.Third,education is a national project,to promote the development of education not only needs the guidance of individual income tax,but also needs the coordination and implementation of other administrative policy means.There are four chapters in this paper.The first chapter is the introduction,which is a brief exposition of the research background and significance.This paper expounds the theoretical analysis of education economics at home and abroad in ancient and modern times,the influence of individual income tax research,the influence factors of family education expenditure and other aspects,and gives a detailed explanation of the research ideas,research methods,innovation points and research deficiencies.The second chapter analyzes the current situation of individual income tax reform and family education in China.This chapter not only lists the contents of individual income tax reform and the reasons for the new individual income tax reform,but also briefly combs the novelty of the individual income tax reform in 2019.Then from the level of family education expenditure and expenditure structure of two levels,in view of the current situation of financial expenditure and non-financial expenditure of family education of Chinese residents,analysis of the current problems and deficiencies of family education expenditure in China.The third chapter uses the questionnaire survey data for regression analysis.From the overall regression results,the new individual income tax reform has a significant promoting effect on family education expenditure when controlling the fixed effects of factors that do not change over time,such as region,family and time.The heterogeneity analysis of the impact on family education shows that the new individual income tax reform has a better promotion effect on urban residents than rural areas,and has a better promotion effect on the eastern region than other regions,and has a higher impact on the expenditure on subject education than the expenditure on non-subject education and continuing education.Then it analyzes the impact of the new individual tax reform on different education expenditure in different regions,and analyzes the shortcomings and improvement direction of the new individual tax reform in promoting family education expenditure.The fourth chapter is the conclusion and policy suggestions,drawing lessons from the experience of education-related deduction in the individual income tax policies of more developed countries and regions in the world,combining China’s national conditions and the above analysis for the future individual income tax reform.