Research On Individual Income Tax Reform With Family As Tax Paying Unit

With the evolution of China’s economy,the subsistence level of residents has enhanced observably,the income has gradually presented a trend of diversified development.However,the distribution is not fair,and the disparity between the rich and the poor has been expanding.With the aged tendency of population,the promulgation of the three-child policy and the deepen reform of constitutive tax reduction policies have challenged the role of personal income tax in alleviating the economic burden of middle-and low-income families and "reducing" the social disparity among the rich and the poor.In the 1980’s in China began to put the personal income tax into practice,individual income tax law of our country has experienced several reforms so far,2019 new tax in the tax mode,special additional deduction made considerable improvement in many aspects,but always be personal tax unit,in the basic expense deduction,tax rate design,special additional tax deductions,insufficient mode still exists.China’s present personal income tax system has lots of space for progress in adjusting income distribution and reasonably reducing tax burden.Based on the background,I compared the tax system of "individual" and "family",analyzed the advantages of the individual income tax system with family as the tax paying unit,and put forward the suggestion of changing the individual tax unit into family.This paper tackles the problem of individual income tax history in China,analyzes the current tax code in tax revenue fairness and reduce the tax burden of expounds the implementation of the family for the tax unit of tax to adjust income distribution,reduce the family burden,and promote the role of social justice,in order to make up for the inadequacy of the current tax,Using the American family declaration system for reference to simulate the impact of China’s family income tax on the income of each class.It further proves that taking family as tax paying unit is the direction of future personal income tax innovation.Meantime,this paper also analyzes the difficulties that the implementation of family income tax will face,such as the impact on marriage,the high demand on the taxation model.Finally,this paper puts forward corresponding solutions to the problems mentioned above and the difficulties encountered in the implementation of family income tax in the future.