Study On The Reform Of Personal Income Tax System With Family As The Unit Of Taxation

For personal income tax,you can choose "family" or "individual" as its payment unit.China’s personal income tax is now applying the individual tax unit,and the design of tax elements is based on it.The focus of the personal income tax function is to adjust the income distribution,so the tax system design should meet this purpose,to achieve the role of redistribution of income.Personal tax is more concise in the tax collection and administration,in line with the standards of simplified tax system,but does not really do a fair income distribution.The current personal income tax does not take the burden of the family into account,but we are living together as a family unit,so the family burden really affects the disposable income of the individual.Therefore,for the adjustment of income tax,personal income tax should consider the family situation.Although there are many difficulties to overcome concerning the current implementation of the family for the tax unit,in order to truly reflect the role of personal income tax to adjust income,and to achieve the goal of taxation on capability,I believe that the next step in tax reform is to implement a family unit in personal income tax.The first part of this article is the introduction,to introduce the research background,research significance,domestic and international research status of personal income tax,and put forward the research content and research method of this paper.The second part discusses the necessity and feasibility of levying personal income in the family unit.At first,different tax units of income tax will be compared,respectively,to introduce individual and family units.Then the analysis of the current personal tax problems,especially is not conducive to a fair distribution of income,the family as the payment unit is the inevitable choice.Again from the family point of view,China’s current family structure is suitable for the reform of choosing family as a levying unit.Finally,in view of some difficulties existing in the reform of the family tax unit,the feasibility of the reform is analyzed.The third part analyzes the shortcomings of our country’s current tax system design under the premise of family unit.The fourth part comes to briefly introducing the tax system of the four countries——the United States,Britain,Japan and France,in order to draw lessons from the perfection of national tax system design.In the fifth part,the reform plan is put forward according to the shortcomings of the personal income tax,and the tax factor is redesigned on the basis of the personal income tax in the family unit to conform with its function orientation.It is imperative that personal income tax should combine classification with integration,thus this paper proposes a specific classification,redesigning the tax rate,refining the cost deduction,consider the deductions of all burdens in a family,and also puts forward new advice as for the tax collection and administration.