Research On The Expense Deduction System Of Wage And Salary Income In China

Personal income tax is one of the internationally accepted taxes, our tax system is animportant component. It plays an essential role in the regulation of the gap and increase fiscalrevenues. Since2006our country has been raised three times the standard deduction of salarycost of the project, but the existence of such a unified standard deduction method of curing alot of problems, can not adapt to the changing economic situation, the result is unfair,3500yuan standard deduction is still debated. A flexible and can effectively solve thecontradictions of China’s tax system that occur during the development of wages and salariesexpense deduction system has become an urgent need.Firstly deducted from the cost of the project, standards and methods start on three angles, amore detailed summary of the meaning of expense deduction system. In this paper, taxfairness and Maslow’s hierarchy of needs theory as the theoretical basis for the realization ofpersonal income tax expense deduction pointed standard design is directly related to thescientific goal of tax fairness, and taxpayers will demand level of social development andtheir status as rising therefore the personal income tax expense deduction standards shouldalso consider the needs of the taxpayer-level design, laid the theoretical foundation for thefull text.Personal income tax expense deduction system in many countries and regions is relativelymature, the author uses qualitative analysis and quantitative analysis methods, on thesuccessful experience of the personal income tax expense deduction livelihood necessarydeductions and special deductions were compared: By comparing the relationship betweenchanges in deductions livelihood Taiwan and inflation index, introduced livelihood deductway like Taiwan relatively stable price level and income unrelated areas; US personal incometax combined with a critical point and concession revenue limits on the US income-relateddeductions livelihood way, by mapping to compare the United States is closely related to thededuction of livelihood change trend and the price level; By listing standards of the US fiscalyear of2013that introduceing a specific amount of deductions American standard deductionand deduction of necessary expenses cited a combination of deduction methods. Special charges deducted as a deduction with a policy-oriented or explicit purpose, give fullconsideration to the interests of taxpayers, improve expense deduction system.In order to develop a scientific system of personal income tax expense deduction, the paceof reform has not stopped. The paper introduces the courses of reform and developmentphases since1980, although modified many times, but still exists in many shortcomings inthe regulation of income distribution and its narrowing the gap between tax revenues are stillsignificant limitations. Using quantitative analysis methods indicates the problems in oursystem of personal income tax expense deduction exists: By observing the recent impact ofthe average number of employed persons in each of the burden on the consumer spendingnumber of residents, shows that our neglect of different family burdens taxpayers deduct thecost of the system is to be improved; Fluctuations in the consumer price index rising trendand our unity solidified expense deduction paradox Standard description expense deductionadjustment mechanism failed and the market economy system integration; By comparing theper capita income of urban and rural residents and the Engel coefficient explanation expensededuction standard design and neglect of urban and rural and regional factors still exist"differentiated" phenomenon; Through the introduction of cash consumption expenditure ofurban residents described imperfect cost deductions. In order to coordinate the relationshipbetween equity and efficiency in a variety of factors to consider family burden, the price level,regional and urban-rural differences, put forward reform proposals based on targeted in fiveareas: The proposal to establish a joint declaration deduction family system, the establishmentof the price level combining flexible adjustment expense deduction standards, considering theurban and rural factors,and regional factors, the expansion and refinement of cost deductions,unified standard of deduction.In short, the paper stood expense deduction of personal income tax system on the basis ofdevelopment, by drawing on international experience in the development of relatively mature,regiming a systematic exposition to further reinforce the system of personal income taxexpense deduction theoretical foundation and improve expense deduction.