A Study On Personal Income Tax Expense Deduction System Of China’ Legislation

In2013, The government work report put forward, to narrow the gap in incomedistribution, make the development more to benefit all the people. Annual session of thenational parliament in March2014, proposed that the development of the cake bigger,citizens were looking forward to receive a better cake, more equitable, needing tofurther narrow the income gap. We should carry on the fiscal and taxation systemreform in China, in the field of redistribution, through tax to adjust income, make thepublic finance income raised to better safeguard the people’s livelihood, and at the sametime through tax reform to adjust the income of different classes.The personal income tax is based on natural person of all kinds of taxable incomeas a tax levy object, is the government using tax on personal income adjusted a means.The personal income tax as a common tax is imposed. Especially in developedcountries, because of its high per capita gross national product (GNP), high personalincome. As a result, the personal income tax revenue has a higher proportion in thewhole tax revenue, such as the United States and other countries,the tax of personalincome tax is the most revenue, the personal income tax in the tax system occupies avery high position.The personal income tax is a direct tax, no matter from the angle of regulatingpersonal income level, or from the perspective of adjusting direction of consumptionand the industrial structure, more effective. the personal income tax collection surfacewidely at the same time, is also important to organize the fiscal revenues,So thepersonal income tax is the duty of developed countries. Since1980to impose thepersonalincome tax in our country, the tax revenue growth rapidly. Along with ourcountry economy development and people living standard rise, the personal income taxproportion is more and more bigger, the collection objects are from working class, toentrepreneurial succeed and enterprise boss today. The personal income tax has becomean important part of the tax system in our country. Also play a role of a diversified,individual income tax in addition to the realization of tax revenue, but also thedevelopment of national economy.The personal income tax is closely related to the interests of every citizen, to theexisting distribution structure ’s adjustment will have a significant impact.Therefore, theperfection of the personal income tax system is very important. The implementation ofthe individual income tax expense deduction should reflect the tax fair principle. But expense deduction of individual income tax system in our country, has a lot of defects inreflecting the tax fair principle.On the one hand, the classification of patterns, in theprocess of deduction is not considering the difference of family economic burden, alsonot to consider the tax burden on the taxpayer’s actual ability, The determination ofdeduction no implement indexation, do not reflect the price factor, thus deviating fromthe regulation of individual income, achieving the goal of fair distribution of incomeand the principle, it is difficult to make fair tax lateral. On the other hand,"One size fitsall" approach, without considering the taxpayers’ individual differences, and collectionefforts is not big, in the aspect of realizing fair tax longitudinal,there also is a bigproblem, so difficult to realize the essence of tax fairness.Abroad in developed countries, some of the tax system more perfect designed andthe expense deduction system can reflect the taxpayer’s individual differences andconsidering the factors, so as to realize quantity tax, manifests the tax fair principle. Inorder to make our country personal income tax system can adapt, it is necessary tocarefully analyze the lack of system, starting from the situation of our country, withpractice, drawing lessons from foreign personal income tax system of good experience,consummating our country individual income tax system. Based on China’s nationalconditions, the development of our country personal income tax expense deductionsystem, summarizes the current pattern of individual income tax expense deductionsystem, analyzes the problems existing in the current individual income tax system ofexpense deduction, in reference to foreign advanced individual income tax expensededuction system is proposed on the basis of proposals to reform the system of ourcountry individual income tax expense deduction, in order to build a compatible withthe economic development of our country individual income tax system of expensededuction, so as to give full play to the individual income tax to adjust incomedistribution, alleviate social inequality role, and solve the increasingly serious problemof the gap between rich and poor in China.