Research On The Optimization Of Special Additional Deduction For Individual Income Tax In China

The new personal income tax law was officially implemented in 2019,and the special additional deduction policy has gradually become a hot topic of discussion.This policy mainly reflects four aspects of education,medical care,housing and pension.The deduction items in these four aspects are related to every family.The arrangement of daily living expenses also shows my country’s tax response to various livelihood issues that it is facing.The original intention of the policy design is to effectively reduce the daily burden of every taxpayer and ensure citizens’ basic right to survival.However,with the gradual deepening of relevant research,it is found that although the current special additional deduction policy considers the tax burden of different families to a certain extent,the design of the "one-size-fits-all" deduction standard also weakens the fairness of personal income tax.Whether the personal income tax can play its essential status and function mainly depends on the fairness of the design of the system itself.The lack of fairness of personal income tax will not only affect the income and competition relationship of different economic entities,but also not conducive to the normal operation of the national tax system.For this reason,this paper mainly analyzes the enjoyment of the special additional deduction policy by taxpayers in different income segments through questionnaires and based on the actual situation of taxpayers.It is found that the policy has limited effect on low-income groups.Reasons for enjoying the special additional deduction,and analyze the fairness and rationality of the design of the special additional deduction policy.For example,my country has a large population,unbalanced regional development,and the living conditions of different families are very different.However,the special additional deduction adopts the national uniform The "one-size-fits-all" deduction method cannot reflect the pursuit of fairness in the personal income tax burden.At the same time,the deduction standard that does not consider economic development will not only lead to the deduction standard falling behind economic development,but also cannot effectively maintain the authority of the tax law.In order to solve the problems existing in the deduction of personal tax preferences,this paper introduces in detail the relatively mature personal income tax system and expense deduction in developed countries such as the United States,summarizes the advanced experience abroad and combines my country’s current national conditions,and proposes to optimize my country’s personal income tax system.The relevant countermeasures for the special additional tax deduction policy.In terms of deduction standards,it is necessary to consider the differences in economic development in different regions and the difference in household burdens,and consider the impact of economic development to establish a dynamic adjustment mechanism for deduction standards to eliminate the impact of inflation on taxpayers.achieve a fair tax burden.In terms of the scope of deduction,it is recommended to add special additional deduction items,and at the same time,the specific design of the current additional deductions should be refined.In terms of collection management,tax authorities should further improve collection and management capabilities,realize the full sharing of tax-related information among various departments,and gradually implement the establishment of a tax credit system to increase taxpayers’ illegal costs.As a just-started preferential tax policy,it can only be perfected through continuous reform practice.