Research On Pre-tax Deduction Of Supporting The Elderly

Under the dual effects of a generally prolonged life expectancy and a continuous decline in fertility,the process of global aging is accelerating.Human society is changing from a young society to an elderly society.The current ageing of our population is deepening.The data show that the proportion of the elderly population over 65 in the total population in China has increased from 7%in 2000 to 11.9%in 2018,and it is continuously increasing.Unlike other countries that have entered the aging process,China has entered the aging society under the conditions of "before getting rich" and "before getting prepared ".The pressure on the family to support the elderly is gradually increasing,it has also become an important social issue.In order to properly solve the problem of old-age care and alleviate the pressure of support,China has taken various measures simultaneously,using a series of administrative and economic measures,and taxation as an important policy tool in economic measures.It should also play an important role in alleviating and solving the current old-age problem.On August 31,2018,the Fifth Meeting of the Standing Committee of the Thirteenth National People’s Congress voted to pass a decision on amending the personal income tax law.Added six additional special deductions in personal income tax,including supporting elderly,the deduction clearly states that the taxpaye’s maintenance expenses for parents who have reached 60 years of age,and for grandparents whose c.hildren have passed away,can be deducted at a fixed amount of 2,000 yuan/month.The addition of special additional deductions can,to a certain extent reduce taxpayer’s tax burden and maintenance pressure.In this paper,the research on pre-tax deductions for the expenses of supporting the elderly is also carried out around the special additional deductions of individual income tax for supporting the elderlyThe text combines the differences in China’s family structure,and uses the data related to the maintenance subject and the elderly subject in the China Health and Retirement Longitudinal Study(CHARLS)database from the four aspects of deduction objects,deduction items,deduction age standards and deduction amount standards.Through a comprehensive analysis of the special supplementary deductions for the elderly,it is found that the scope of the deduction object is narrow,deduction items do not reflect differentiation,deduction of age does not consider special population,and the deduction amount standard is single.The existence of these problems indicates that there is room for continuous improvement of special additional deductions for the elderly.In order to improve the current special additional deduction for supporting the elderly,based on the analysis of the problems existing in the deduction,this paper summarizes the experience of some countries and regions in the deduction of individual income tax for supporting the elderly.It is suggested that in the follow-up improvement of the special additional deduction for supporting the elderly,we should consider the differences in the situation of the taxpayer’s supporting objects,appropriately expand the scope of the deduction objects,refine the deduction items,adjust the deduction age standard,set up the differentiated deduction amount and delimit the income boundary of the supporting objects,reasonably measure the taxpayer’s tax ability,and then reasonably distribute the tax burden,enhance the fairness and fairness of special supplementary deductions for senior citizens,and also make the pre-tax deduction system for personal income tax more in line with the princple of tax equity.The main contents of this paper are as follows:the first part,the introduction which describes the research background,research significance,literature review at home and abroad,and introduces the research methods,innovations and shortcomings of this paper;The second part,the related concepts and theoretical basis of the pre tax deduction of the personal support for the elderly,introduces the related concepts and theories of the pre tax deduction of the personal support for the elderly,and provides the theoretical basis for the follow-up research of the article;The third part is the analysis of the current status and existing problems of pre-tax deductions for the support of the elderly.This part mainly explains the policy content of the current special supplementary deduction for supporting the elderly,and at the same time uses the relevant data of the current state of aging in China and the current status of the elderly,combined with the relevant data in the CHARLS database to make specific content of the current special supplementary deduction for supporting the elderly,it is found that the scope of the deduction object is narrow,deduction items do not reflect differentiation,deduction of age does not consider special population,and the deduction amount standard is single.pro vide direction for the improvement of special supplementary deductions for supporting the elderly;the fourth part,the international experience of the pre tax deduction of individual supporting the elderly,mainly selects and introduces the personal income of the United States,Japan,Hong Kong of China,Chinese mainland and Taiwan of China In the tax,we analyze the policies related to the deduction of expenditure for supporting the elderly,so as to provide relevant international experience for the follow-up improvement of the pre tax deduction of supporting the elderly in China;in the fifth part,we improve the suggestions for the pre tax deduction of individual supporting the elderly in China,summarize the data analysis above,draw on the relevant experience of some countries and regions,and put forward our own suggestions for the follow-up improvement of the special additional deduction of supporting the elderly The sixth part is the conclusion It mainly summarizes and comments on the research content of this paper.