Study On Special Additional Deduction System Of Individual Income Tax

Taxation is an important source of national fiscal revenue and the main means to regulate social distribution.Tax law system is an important system guarantee to realize social equity,and its modification and perfection is the inevitable requirement to implement the theory of equity and efficiency.The Standing Committee of the 13 th National People’s Congress passed the seventh amendment of the Individual Income Tax Law.The special additional deduction system added in this amendment has a great impact on the social level.The emergence of the new system is the performance of the continuous improvement of the tax law,but due to the lack of experience or survey data,there will be some deficiencies.Under this background,this paper studies the current situation and theoretical basis of China’s special additional deduction system,analyzes the system problems,analyzes foreign experience,and puts forward reasonable suggestions to improve China’s special additional deduction system.On the one hand,based on the basic theories of tax fairness theory,energy-quantifiable taxation theory and tax efficiency theory,combined with the implementation of the special additional system,previous research data and survey data,this paper finds that there are four problems in the system: the legislation of deduction rules is not standardized,the deduction standard and model is not flexible,the allocation method is not reasonable,the collection and management measures are not sound.On the other hand,this paper uses the comparative analysis method to study the provisions of the special additional deduction system in the United States,the United Kingdom and Japan,and summarizes the experience of the three countries in the tax unit,deduction standard and deduction mode.Finally,the paper puts forward corresponding suggestions based on practical problems and overseas experience.At the level of institutional rules: delete the provisions limiting the amount of deductions carried forward by taxpayers;Adhere to the individual as the tax unit and with special additional deduction system,relatively accurate measurement of taxpayers’ ability to pay taxes;According to the nature of the deduction items,set up the standard deduction or the limit deduction according to the fact.In the level of supporting measures: set up a dynamic deduction standard adjustment mechanism,the professional staff according to each year’s consumer consumption index to determine this year’s deduction standard;We will improve the collection and management of special additional deductions.This paper hopes to provide ideas for the improvement of the special additional deduction system by studying theories,finding problems,summarizing experience and putting forward suggestions.