Research On Pre-tax Deduction System Of Personal Income Tax

Pre-tax deduction System of personal income tax, as one of the most important law of personal income tax, always receives much concern. With the rapid economic development and the unceasing social changes, this system, in which numerous come out, fails to adapt to the current social circumstances, fails to satisfy the tax payers' willings and needs and requires perfecting after it was set up and revised a dozen times. In the Third Plenary Session of the Eighteenth Central Committee, it was raised that the structural reform should better satisfy people's needs. After the committee, the new reform in the fiscal taxation system was in full swing, the new reform personal income tax became one of core tasks, and the perfection of pre-tax deduction System was placed high hope. In this context, on the theoretical basis of Maslow's hierarchy of needs theory, this thesis centers on how the perfection of the pre-tax deduction system can better satisfy the people's needs in the current reform wave of tax system. This thesis will give a detailed analysis of the shortcomings of the deduction mode, the deduction items, the deduction unit and the deduction method. This thesis considers that the tax payers' needs for preferably meeting their basic needs in the way of regulating the deduction method, optimizing the deduction items, changing the deduction unit and improving the deduction methods.Besides the introduction and conclusion part, there are four parts:The first part will center on the overview of pre-tax deduction System of personal income tax from the angles of conceptual definition, relative conceptual distinctions, main principles, combing sources and showing the status quo. In this part, the definition of the system will be made clear, its main principle will be introduced, its thread of development and evolution will be presented clearly, as well as its status quo will be showed in terms of the deduction mode, the deduction items, the deduction unit and the deduction method.The second part will have an indispensable introduction of hierarchy of needs theory as the theoretical foundation. The levels of basic needs as well as the conditions, the common elements and the significance for meeting basic needs will be unveiled with emphasis.In the third part, theauthor will remark on the pre-tax deduction System from the perspective of Maslow's hierarchy of needs theory. The author endorses the progress made in its reform and realisticly points out the shortcomings resulted from the fact that the system is not oriented by tax payers' needs according to its status quo. The shortcomings are as follows: the itemized deduction mode is unable to equally meet tax payers' need; the deduction items set so narrowly to meet their safety need; an individual as the deduction unit is bad for meeting their needs of belonging and love; the standardized deduction method is uncapable to embody the diversity of the conditions of meeting their needs.In the fourth part, the author will come up with pointed measures of perfecting the system which will be oriented by the tax payers' needs. The measures include adopting comprehensive deduction mode in the process of its perfection, increasing the deduction items like medical expenses, educational training as well as the interest of housing loan, choosing the tax payers' family as the deduction unit and emphasizing the differentiated deduction methods.