Research On My Country's Personal Income Tax Expense Deduction System Based On Two-dimensional Fairness

The principle of fairness is the first principle of the tax principle,and the concept of tax fairness is a multi-dimensional concept.Judging whether the tax system is fair requires consideration from multiple perspectives.As one of the four major taxes that are equal to value added tax,consumption tax,and corporate income tax,personal income tax is of great significance to China’s national economy and people’s livelihood.China’s economy has developed rapidly,and people’s living standards are increasing,and per capita income is generally increasing.At the same time,people’s living costs have continued to rise,and the gap between the rich and the poor has widened.This has also made income distribution an urgent problem.In order to adapt to social development,in recent years,the basic livelihood expenses deduction of China’s personal income tax has increased from 800 yuan to 5,000 yuan today,and has undergone several tax reform adjustments of 1600 yuan,2000 yuan,and 3500 yuan.Among them,in 2018 The latest tax reform is the seventh overhaul since the introduction of the 1980 tax law.This amendment to the personal income tax law presents an epoch-making change,not only officially changing the collection system from classified collection to classification syndrome collection.The income items are included in the scope of the syndrome tax,and six special additional deduction systems such as child education,continuing education,critical illness medical care,housing loan interest,housing rent and pensions are added.These measures make the new personal income tax law more in line with the principle of tax fairness.Although China’s personal income tax system has been quite perfect after the 2018 tax reform,there is still room for improvement.First,there are still many shortcomings in China’s current classification and comprehensive mixed collection model.Second,even though the current fee deduction system has improved from the past,there are still insufficient and reasonable problems in deduction details,mainly manifested in fees.The deduction is not indexed and the amount is not accurate enough.The cost deduction does not take into account regional differences and the deduction standard is unfair.The cost deduction does not fully take into account family and personal factors,which prevents the income distribution function from functioning properly..Therefore,China’s individual tax system should gradually incorporate more taxable items that are individually taxed into the syndrome tax system,establish a standard deduction standardization mechanism for automatic deduction of expenses,and a regional differentiation mechanism,taking into account the family and personal differences of taxpayers.In order to improve the individual tax system and reduce the burden on taxpayers,the fairness should be improved in both horizontal and vertical dimensions.This article analyzes the deficiencies of the current personal tax expense deduction system home and abroad by linking the tax system and the state of economic development,analyzing and comparing domestic and foreign personal income tax systems.Fully explore,and strive to further refine and improve the various fee deduction systems in the context of the formulation of the new tax law,and develop a fairer and more efficient tax deduction system.