Research On The Special Additional Deduction System For Children’s Education Of Individual Income Tax In China

Education is the foundation of a hundred year plan.Education is the cornerstone of national rejuvenation and social progress,as well as the fundamental way to improve national quality,cultivate innovative talents and promote all-round development of people.With the continuous development of society and economy,parents have higher and higher expectations of their children,and generally tend to let their children enjoy higher quality education.As a continuous and universal expenditure,children’s education costs account for a high proportion of household expenditure.Education costs have become an important livelihood issue.The new Individual Income Tax Law of the People’s Republic of China,which came into effect on January 1,2019,has added special additional deductions for children’s education,which is a systematic response to the problem of children’s over burdened education expenditure.From the perspective of the implementation effect of the policy,allowing pre tax deduction of children’s education expenditure is of great significance to reduce the educational burden of family children,protect and encourage citizens to receive education,and promote the development of the education industry.However,the special additional deduction system for children’s education introduced this time still has such practical problems as low deduction amount,narrow deduction scope,single deduction subject and insignificant income distribution effect,which to some extent restricts the implementation effect of the special additional deduction policy for children’s education.This thesis focuses on the special additional deduction system for children’s education of Individual Income Tax in China.First of all,study the provisions of the special additional deduction system for children’s education.Through the study of literature and relevant data,combined with the current development situation in China,it summarizes and puts forward the problems of the special additional deduction system for children’s education of Individual Income Tax in China;Secondly,based on the experience of foreign special additional system for children’s education,this thesis proposes four possible plans for the reform of special additional deduction system for children’s education in China,and uses comparative analysis and micro simulation methods to measure and analyze the effect results of different plans from the two perspectives of tax reduction effect and income redistribution effect;Finally,combined with fairness,efficiency and the actual situation of China’s tax collection and management,this thesis analyzes the operability of the four reform plans,selects the optimal reform plan,and puts forward countermeasures and suggestions on how to further improve the special additional deduction system for children’s education in China.The research of this thesis shows that the tax reduction effect and income redistribution effect of different special additional deduction systems for children’s education are different.Considering the national conditions of our country and the operability of the program,it is suggested that the special additional deduction system for children’s education should be set up according to the different stages of women’s education in different regions,and the tax reduction effect and income redistribution effect of the special additional deduction system for children’s education should be optimized.