Research On Income Tax Deduction From The Standpoint Of Basic Rights Protection

Income tax,as the taxation object of income,can be divided into personal income tax and corporate income tax as per the taxpayer.Taxing on income rather than revenue means a deduction of various expenses.However,the objective phenomenon of expense deduction is not enough to explain the basic standpoint that the designers of income tax rules need to obey when designing the expense deduction institution.From the perspective that a country can decide whether to levy income tax,legislators not only can define the connotation of income,but also can decide all aspects of income tax rules including the expense deduction institution.Even if the deduction is allowed,the deduction in this case is only a boon to the taxpayer.However,placing the income tax law in the perspective of a constitutional country,all laws,including the income tax law,must not infringe on the basic rights granted to the taxpayer by the Constitution,as well as income tax deductions.Due to different standpoints are taken on income tax deductions,the design of income tax deduction rules is naturally different.Since the reform and opening-up,although the income tax system has been continuously improved in China,the chaos in the deduction rules has never ceased,and the radical reason is grace standpoint.Therefore,the paper is problem-oriented and follows the thinking approach of “proposition and proof of basic rights protection standpoint—examination of operating environment of basic rights protection standpoint—specific application of basic rights protection standpoint” to clarify the necessity and feasibility of abandoning national grace standpoint and adopting the basic rights protection standpoint.Based on the above reasons,it provides specific guidelines for the optimization and improvement of income tax deduction rules in China.The main contents include the following five chapters:Chapter I Chaos of Income Tax Deduction in China and Its Root Cause.Since the reform and opening-up,although income tax system in China has been continuously improved,when we review the evolution of income tax deduction rules in China,it can be described as a chaotic fall.Among them,the deduction of costs and expenses has become a control tool of the administrative departments,and there is a problem of lack of internal logic of livelihood expenses deduction.The formation of chaos results from the tax law instrumental-ism factor and tax law makers lack of a deep understanding of income tax deduction function,they overemphasize the function and ignore the value.But these are all subject to the standpoint of the tax maker on the deduction of income tax—the standpoint of national grace.Chapter II Proposition of the Standpoint of Basic Rights Protection on Income Tax Deduction.Examining the practice outside the territory,the position of national grace on income tax deduction is not unique to our country.However,the position of grace is not far-reaching,and has triggered reflection and criticism in the theoretical and practical circles.Its core focus is on how the national taxation power should face the basic rights of taxpayers.In contrast,Germany interprets its special position on income tax deductions—the position of guaranteeing basic rights with its judicial practice.From the standpoint of basic rights protection,the income tax deduction is not the result of national grace,but the basic rights derived from taxpayers.The legislator can and can only shape the income tax deduction rules in line with the protection of basic rights.In response to the chaos of income tax deductions caused by the grace position,it is necessary for China to take seriously the position of guaranteeing the basic rights of income tax deductions.Chapter III Justification of the Standpoint of Basic Rights Protection on Income Tax Deduction.How to choose between national grace standpoint and basic rights protection standpoint,it requires both a rational assessment of a country’s specific national conditions and an examination of the tax and legal theories behind income tax deductions.From the perspective of taxation theory,the principle of net income is the core mechanism of deduction,and the benign operation of the principle of net income is based on the principle of ability-to-pay,which is rooted in the protection of basic rights.By the principle of ability-to-pay,the income tax deduction mechanism can also be described as a built-in basic rights protection concept.As far as jurisprudence is concerned,income tax deduction is a property right born from tax obligations.Since property right is the core and carrier of basic rights,and tax liability is also limited by the nature of basic rights,we can say income tax deduction is a tool to restrict taxation powers which can ensure the essential content of basic rights.In terms of national conditions,it is also necessary to ensure basic rights protection standpoint.It can not only address the subject of the age of constitutional review of the income tax law,but also help to strengthen the value of the statutory principle of taxation and help China realize the substantive rule of taxation law.Chapter IV Environmental Assessment of the Standpoint of Basic Rights Protection on Income Tax Deduction.In view of the ultimate purpose of tax justice is to protect basic rights,the tax statutory,ability-to-pay,and levy economy as the Basic principles of tax law,and they have demonstrated tax justice in three dimensions: formal justice,substantive justice,and technical justice.Therefore,the operating environment for the protection of basic rights can be carried out from these three dimensions.Although there are still many obstacles to inserting the basic rights protection stance for income tax deduction rules,such obstacles will be eliminated with the steady advancement of tax statutory principles,increasing attention to constitutional review,and the continuous improvement of tax collection and management technology.In general,China has an institutional environment that supports the operation of the basic rights protection stance.Chapter V Realization of the Standpoint of Basic Rights Protection on Income Tax Deduction: Focusing on the Deduction Rules.The realization of the basic rights protection standpoint on income tax deduction is divided into two levels:the first level is the realization of the principle or rule design basis level;the second level is the realization of the specific rules of income tax deduction.Following the idea of deduction of cost and living expenses,it is pointed out that the protection of business(property)freedom should become the basic guideline of cost expense deduction,and the protection of the right to survival should be the core yardstick for deduction of living expenses.Combined with the particularity of the cost deduction rules,it is pointed out that the restriction on cost deduction constitutes a restriction on basic rights,and the principle of legal reservation should be followed.The normative level of the cost deduction limit needs to get rid of the situation dominated by regulatory documents;On the one hand,verification deductions should become the general direction of deduction of personal income tax costs,while corporate income tax legislation should focus on adjusting rules such as prohibition of forfeiture losses and deduction of operating expenses limits.The living expenses deduction rules mainly start from the two aspects of optimization and expansion.As far as the optimization of living expenses deduction is concerned,it involves discussions on three types of deductions: basic deductions,insurance deductions and special additional deductions.As for the expansion of the living expenses deduction rules,the paper focuses on the increase of deduction subjects and the deduction items.