Research On Personal Income Tax Expense Deduction Standards For Wage And Salary Income Of Our Country

China began to levy personal income tax in 1980, and its mode--scheduler system of taxation have played an important role in realizing fiscal revenue and adjusting income distribution Over the years. However, some problems in personal income tax, such as tax model, expense deduction system and the structural design of tax rate have gradually appeared, the paper selected wages and salaries expense deduction standards to study in all these problems, and it started from the introduction of basic theories of expense deduction, analyzed the problems of current personal wage tax exemption system and explored related solution to these problems.China's current personal wage tax exemption is fixed deduction which applied by the whole nation. Its advantages are that it is simple to calculate, easy to control and it is more efficient, but the obvious disadvantage:it's unable to guarantee a fair tax. As an important part of the personal income tax deduction, the standard of personal wage tax exemption can best embody a nation's macroeconomic policy intentions, and it also directly related to the vital interests of the major working-class. This is the reason why the standard of personal wage tax exemption was a hot argument in the first half of the year. Although it is approved by vote in the 21st session of the Eleventh National People's Congress that China's current personal wage tax exemption raised to 3500Yuan/month, this amendment, like the previous two, have no substantial change, still, it cannot completely solve all the problems that exist in the expense deduction system. Therefore, the research on the standard deduction for salaries and wages is Practical in improving China's personal income tax system, giving full play to regulate the distribution function of personal income tax, protecting the interests of medium or low-income class.This paper is divided into five parts. The first part is the introduction, describes the general topics of the article, the background, significance, research methods and research issues related to situations at home and abroad. The second section describes the theoretical basis of expense deduction system, including the people's livelihood, social justice and tax fairness theories. The third part sorts out the development process of expense deduction standards system classify the current deduction terms and give an analysis of problems of the current China's personal income tax expense deduction system. Section IV presents the expense deduction standards provisions of United States and Japan for learning from advanced experience and good practices of these developed countries. Part V advances some proposals of perfecting expense deduction standards system from both short and long term.