The Choice Of Tax Unit On The Background Of China’s Individual Income Tax Reform

Individual income tax units are divided into individuals and families,and the selection of different tax units will play a crucial role in the reform of individual income tax.The individual tax system can satisfy the form of tax justice,but it lacks substantial consideration for the taxpayer’s family burden,which will further widen the wealth gap between families and cause the increase of social instability.As the basic constituent cell of the society,the family is regarded as the tax unit of individual income tax,which is in line with the fair value orientation of tax system reform.After the amendment of the Individual Income Tax Law in 2018,China still regards "resident individuals" as the tax unit,but Article 2（3）of the new law clearly defines the scope of comprehensive income for the first time,which includes wages and salaries,remuneration,labor remuneration,and royalties and other income,Interim Measures for the Individual Income Tax under Special Additional Deduction also introduced at the same time,show that began to consider the family factors behind the tax in our country.The establishment of classified comprehensive income tax system and the establishment of special additional deduction provide a mature background for the discussion on the selection of individual income tax units.In this context,it is of great significance to study the selection of tax units for individual income tax.On the basis of different theoretical basis and measurement principles,countries have different choices of tax units for individual income tax.The theoretical basis of individual tax system is the value of individualism.The theoretical basis of family tax system can be explored from different angles of law,sociology and economics.To sum up,family is the basic participating unit of social and economic activities.Generally speaking,the selection of taxation unit should be evaluated and measured from the principles of tax fairness,marriage neutrality,tax efficiency and rights protection,which are widely discussed in academic circles.The practical experience of western countries has already shown that there is an irreconcilable contradiction between tax fairness and marriage neutrality,and it is impossible to design an individual income tax system that satisfies all tax principles at the same time.The individual income tax system and the family income tax system show their respective advantages and disadvantages under the measurement of different value factors,so the legislator must constantly weigh and choose according to the actual needs,in order to design an individual income tax system that meets the social expectation at that time.The individual income tax system in Britain,the United States,Japan,Germany and other countries has developed for a long time,gradually forming a relatively complete individual income tax system,which has important reference significance for China in the period of tax reform.From the evolution of individual income tax units outside the region,it can be seen that family concept,tax fairness,marriage neutrality and rights protection and other factors will affect the choice of tax units.Although the legislator is committed to designing the individual income tax system that meets all the value needs,these countries always have different value focuses and trade-offs in different historical stages.The individual income tax system and the family income tax system are in the process of mutual transformation or integration.Accordingly,the unit that individual income tax collects is not invariable,the choice that any country collects unit to must accord with national condition.Based on this,the fair value orientation of China’s tax reform makes the family tax system an inevitable choice in China,but this does not mean to give up the individual tax system,but both.The current regulations of individual income tax units abroad provide a good template for our country to perfect the tax system design and supporting system.The current single individual tax system in China has the problem of insufficient function of adjusting income distribution,which leads to the aggravation of family wealth gap.In addition,the social contradiction of the aging and the appeal of the traditional familyoriented concept make it necessary to establish the family tax system in China.Family tax system can not only make up for the defects of single individual tax system,give full play to the distribution function of individual income tax,but also alleviate the gap between the rich and the poor and the aging problem,and meet the traditional emotional needs of our country.In the context of individual income tax reform,taking advantage of the era of "Internet + tax" action,the establishment of institutional and technical obstacles to family taxation is no longer an insurmountable problem.In addition,the impact of family taxation on marriage neutrality in China relatively small,China has greater feasibility to establish a family taxation system.The purpose of this article is to make suggestions on how to construct a family taxation system on the basis of selecting two taxation units in parallel for individuals and families.Firstly,the status of the taxpayer’s subject of the family should be clarified.The problem of family definition is one of the main obstacles to the implementation of the family taxation system,and the reason for this problem lies in the complexity of the family size and structure,the frequent movement of the population,and the serious separation of households.This article analyzes the changing trend of family size and structure in China through family households,extracts mainstream family types,reduces complexity,and clarifies that statutory marriage relationship is the sole standard for family definition in individual income tax.It also considers non-mainstream family forms in the reporting system..Secondly,the tax base and tax rate design of the family taxation system should be improved based on the existing laws,including the determination of the scope of family income,the expense deduction system,the half-by-two system to calculate the tax payable,and reconstructing the tax rate structure of individual income tax under the family tax system.;Finally,the establishment of supporting facilities in line with the family taxation system from three aspects: First,improve the tax collection and management mechanism through the individual property registration system,family tax number system,tax-related information sharing system,and tax audit punishment mechanism,to ensure the monitoring of household income;Second,build individual tax credit system,including taxpayer dishonesty punishment mechanism,tax declaration incentive system and other diversified ways to improve tax compliance;Third,to promote the tax agency system from three aspects of legislation protection,promotion of socialization and establishment of supervision system,and to provide professional services for taxpayers’ independent declaration.