Study On The Rules For Special Additional Deduction Of Serious Medical Treatment

The reform of individual income tax,and increasing deductions for special expenses such as children’s education and medical treatment for major disease,are all aimed at achieving people’s livelihood concept of “Reducing burden reasonably and encouraging people to increase income through labor and move towards prosperity” proposed by Premier Li Keqiang,which is a milestone in the individual income tax reform process.In the field of major disease medical treatment,the medical insurance system in our country has reduced residents’ medical burn effectively so far.However,some major diseases still bring heavy financial burn to the residents.The illness-caused poverty phenomenon is all too common and has drawn wide public attention.The establishment of Additional Special Deductions for Individual Income Tax policy for Major Disease has greatly increased people’s disposable income and sense of gain,and offered ways to solve the problems caused by the high medical spending in people’s daily life.By sorting through the legislative process of Additional Special Deductions for Individual Income Tax policy,this paper makes analysis on current functional positioning of additional special deduction rules for major disease medical treatment,and confirms it is aimed at reducing people’s tax burden reasonably and preventing the return of poverty due to illness based on the principle of Ability Theory of Taxation.Guiding with the functional positioning of deduction rule,combining Ability Theory of Taxation and Economy principle,analysis on the proper structure of additional special deduction rules for major disease medical treatment has been made from the deduction scope,standard,subject and balance transfer.On the bases of that,this paper makes investigation on the functional realization and deficiency of current deduction rule from the four elements above.In the last,experience from foreign countries has also been learned and practical suggestions have been put forward from the four elements,which can exert positive effects on the construction and operation of the additional deduction rules for major disease medical insurance in our country.