| As is known to all, the individual income tax is one of the important policy tools for income redistribution, Expense deduction standard, an important part of individual income tax, can be treat as one kind of preferential tax system substantively, among the factors which affect the tax adjustment, the expense deduction standard is considered to be a the first threshold of tax levy, for its involvement in incidence of taxation and tax base issues which have direct connection with the tax burden for taxpayers. Recently, there are some severe problems in the development of Chinese individual income tax, such as fixed expense deduction standard are no long be able to meet the demands of rising prices, the neglect of Expense deduction standard on taxpayers’ alimony leads to the unfair of tax; The acceleration of urbanization development leads to the height of the boom buy house with loan, the development of spirit pursuit makes it inevitable for children to enter college, which from the expenditure of housing interest and education investment, while these fixed and big household spending has not yet been introduced into the expense deduction standard which caused the unfair of tax burden and so on. At present, the key point of the discussion on the wage income expense deduction standard from different hierarchy of the Chinese is not only focus on the amount of expense deduction, but also on whether the distribution of tax burden could be based on the actual economic burden situation of the taxpayers’ which lead to fair on tax burden. Therefore, to solve these problems, it is necessary to establish a individual income tax expense deduction system which could not only manifest fair but also effectively alleviate the income gap, at the same time can reduce the financial burden on taxpayers and fully arouse the enthusiasm of taxpayers in creating wealth.In this study,we choose the wage income expense deduction as the main research object, selecting the data from1990to2012to study the main factors influencing the expense deduction standard with the basic theory of expense deduction, and then put the per capita consumption expenditure, price index and the number of workers burden these influence factors into the research system using multivariate analysis framework to analyze the dynamic evolution of income tax expense deduction standard, and then get the measurement of dynamic model on the income tax expense deduction standard in China, and conclude that China’s individual income tax should practice the "points income level expense deduction standard dynamic adjustment mechanism"across the country on "unity" on the basis of the detailed income level, Besides, we estimate the change trend of expense deduction standard using the state space model and make reasonable forecast on the standard of expense deduction for the next few years in our country.The results showed that the discretion of the individual income tax expense deduction standard is not only determined by the personal consumption expenditure, the number of burden, but also affected by price index. On the basis of combining the current social situation, the expense deduction standard set of appropriate deducted from specific factors such as education, housing, to truly achieve the amount of individual income tax to pay taxes. |
