Research On Deduction Of Comprehensive Income Expenses From Individual Income Tax From The Perspective Of Tax Law Fairness

Since entering the 21st century,China’s Gini coefficient has always been higher than 0.4,indicating that the gap between rich and poor in China is large and the income distribution is seriously uneven.Personal income tax,as one of the most important direct taxes,plays an important role in regulating social distribution,and the expense deduction system is a key component of the personal income tax law.Therefore,reforming and improving the current legal system for comprehensive income expense deduction of personal income tax based on fairness can better promote the realization of the fair value of the tax law,allowing the individual tax law to fully play the role of adjusting income disparities.After the revision of the Personal Income Tax Law of the People’s Republic of China in 2018,China’s personal income tax collection model has changed from a classified income tax system to a classified comprehensive mixed income tax system,and a preliminary legal system for the deduction of comprehensive income expenses from personal income tax has been established.While improving the basic deduction of expenses,six special additional deductions have been added.This amendment is a significant change in the expense deduction system of China’s personal tax law.Compared to the past,this amendment takes into account the personalized consumption expenditure of taxpayers and their families,which can better reflect the true tax bearing capacity of taxpayers.This reflects the increasing emphasis on the realization of the fair value of the tax law in the context of the amendment of the personal tax law.In 2022,based on the need for long-term balanced development of the population,the State Council decided to add a special additional deduction item for the care of infants and young children under the age of 3,further improving the legal system for personal income tax deduction.However,objectively speaking,the current individual tax laws still have shortcomings in fairness:first,the current adjustment of the expense deduction standard depends on the way of amending the law,which does not meet the requirements of vertical fairness;Secondly,the setting of deduction standards does not fully consider the factors of uneven development among regions in China,and cannot guarantee the realization of substantive fairness;Third,the scope of special additional deduction items is relatively narrow,and the relevant provisions are also unreasonable,which is difficult to fully reflect the true tax affordability of taxpayers;Fourth,there is a mismatch between the collection and management methods and the current expense deduction system,making it difficult to implement the effect of the expense deduction system in promoting fairness.Based on the above issues,this article,based on China’s national conditions,and combining the relevant legislative experience of foreign individual income tax expense deduction systems,puts forward suggestions for improving the legal system of individual income tax comprehensive income expense deduction:First,establish an index adjustment mechanism for expense deduction standards,while ensuring legal stability,to adapt the deduction standards to price changes;Secondly,for housing loan interest deduction projects,the original "one size fits all" national unified standard should be replaced by regional differentiation standards;Third,refine and improve the relevant legal provisions on special additional deductions,and appropriately expand the scope of special additional deductions to more comprehensively and truly reflect the tax burden capacity of taxpayers;Fourth,explore the introduction of a joint declaration mechanism and strengthen regulatory review to ensure the implementation of fair results.