Research On The Income Redistribution Effect And Legal System Optimization Of Personal Income Tax Expense Deduction

The tenth central committee meeting in 2021 proposed to "intensify tax,social security and transfer payments,and improve the precision,enlarge the proportion of middle-income groups,increasing the income of low-income groups,reasonably regulate high income,banning illegal income,in order to improve the distribution structure featured by large part of middle-income groups and small part of high and low-income groups,promote social equity and justice,promote the all-round development of people,make solid progress toward the goal of common prosperity for all the people ".Whether the implementation of the legal system of personal income tax fee deduction has improved the income distribution,and how to optimize the legal system of personal income tax fee deduction is the fundamental problem to be solved in this paper.Based on the basic theory of law and economics,this paper analyzes the implementation effect of individual income tax expense deduction system using panel regression,serial substitution and other methods,and uses genetic algorithm to simulate and optimize the deduction standard.The existing theories of the functional positioning of personal income tax is mainly carried out from the perspective of income distribution,and this paper continues this approach.Firstly,it clarifies the mechanism of individual income tax expense deduction on income distribution,and verifies the necessity and feasibility of promoting common prosperity through the optimization of individual income tax expense deduction system by combing the political economy tax theory,progressive factor model,and tertiary distribution theory.Secondly,based on the theory of law and economics,the optimization principle of individual income tax expense deduction system is proposed.From the perspective of fairness,it should conform to the principle of tax fairness and volume and energy taxation,and from the perspective of efficiency,it should conform to the principle of supply and demand balance and cost benefit.Finally,it analyzes from the research perspective on optimizing the deduction of personal income tax expenses.Under the background of solid progress towards the goal of common prosperity,the legal optimization of the deduction of personal income tax expenses in China must pay attention to the effect of income redistribution.The analysis of the implementation effect of individual income tax expense deduction system is carried out from the whole and itemized perspectives.Firstly,analyze the effectiveness of the reform of China’s personal income tax expense deduction system since 1994,and summarize historical experiences and lessons learned.Based on the analysis of the current income situation of residents,it is believed that the main difficulty faced by social and economic development in the field of income is the widening income distribution gap.The historical review of the legal system reform of personal income tax deduction in the United States and China has proved that the setting of the system of personal income tax deduction is relatively simple and mostly delayed and passive adjustment.The results of panel regression show that the reform of individual income tax expense deduction system has limited impact on income distribution,and there are certain hysteretic effects and regional differences.The study indicates that the optimization of the legal system of deducting individual income tax expenses should be based on the demand of economic and social development,and the automatic adjustment mechanism of regional and indexation should be established.Secondly,the effect of the implementation on the income redistribution effects of the 2018 Individual Income Tax Law adjustment items will be studied in a detailed way to accurately locate the existing problems in the specific items of the current expense deduction system.Through serial substitution,the income redistribution effect of itemized cost deduction is measured.The research shows that the increase of basic deduction standard and special additional deduction items both lead to the decline of income redistribution effect to a certain extent.Therefore,the optimization of deductible items should make structural adjustment and should reflect the difference among regions.The research on the optimization of the personal income tax expense deduction system is based on the protection of residents’ rights of subsistence,development and other rights,and analyzes the specific tax system elements of various expense deduction items,such as the subject and scope of deduction,so as to analyze the problem and put forward a specific plan to optimize the structure.And optimize the deduction standard of each item,the genetic algorithm is used to optimize the interval and the setting of the "appropriateness" standard,and the right protection is combined with the improvement of the income redistribution effect.The due value of the"benchmark and floating" standard is obtained through search iterative calculation and econometric method.The main achievement of this paper is to implement the national plan for regulating income distribution into the specific area of the optimization of the legal system of individual income tax expense deduction.In the great rejuvenation of the Chinese nation and the goal of common prosperity,this paper,based on the income redistribution effect and overall consideration of individual rights,uses the law of economics research methods to build the overall framework and concrete forward path of the legal system of individual income tax expense deduction,and put forward the optimization of related terms and conditions about the personal income tax expense deduction and the perfection of supporting laws and systems.Due to the change of social demand,the research on on the implementation effect and optimization of the legal system for deducting personal income tax expenses should be a long-term and continuous process.