A Study On The Expense Deduction Standard Of The Individual Income Tax In China Under The Mixed Income Tax System

In recent years,Chinese people’s living standard is improved a lot and the disposable income is increasing dramatically.At the same time,the tax burden on taxpayers is becoming heavier and heavier.The reasons are as follows: on the one hand,with the development and progress of society,people’s material and cultural demand increase a lot and the cost of living expenses increases gradually,especially in “education cost” and “housing living cost”;on the other hand,become of the price index rising,inflation pressure is becoming more and more obvious.In order to better for adjusting the income distribution,safeguarding the people’s livelihood and promoting the social harmony and stability,we should review and considerate the expense deduction standard of individual income tax.Based on the opportunity of the tax system mode from the classified taxation mode to mixed taxation mode,this paper analyzes the problems of the expense deduction standard of the individual income tax in China.Through the analyses of real cases and data,and combined with international experience,this paper proposals some relevant suggestions,so that our country can design a more reasonable standard deduction of the individual income tax.There are mainly five parts in this paper.Firstly this paper mainly introduces some basic problems,such as literature review,research methods etc.The second part introduces the general problems of the expense deduction standard of individual income tax.Staring from the analyses of the basic concept,the range of the personal income tax,tax systems and the tax collection methods,this part explains the meaning and principle of the expense deduction standard of individual income tax.Moreover this part also discusses the necessity of the dynamic adjustment on the expense deduction standard of individual income tax.The third part discusses some problems of China’s current expense deduction standard of individual income tax.This part makes an analysis of each specific question.For example,the expense deduction scope is too narrow,the tax declaration is not perfect and the static deduction standard and unified national issues are included as well.The fourth part mainly talks about the foreign expense deduction of the individual income tax and makes a enlightenment for our country.The fifth part discusses the design of China’s personal income tax expense deduction standard under the mixed income tax system.First of all,this part introduces the basic process of the deduction.And then on the basis of cost deduction,this paper deeply analyzes the design of the necessary deduction,the living expense deduction and the special fees.At the last,it puts forward the relevant policy suggestions for this paper.