One of the sources of fiscal revenue is tax. In order to ensure stable fiscal revenue, the state will formulate the tax formulation and tax rate for that year according to economic development, and personal income tax is one of the most widely collected taxes. 1. What are the new personal income tax adjustments in 222 1. The new personal tax policy The government work report mentioned in the suggestions for government work that the personal income tax threshold should be raised. Shi * Bin, Vice Minister of Finance, said at the press conference of the two sessions that to what extent the threshold will be raised, policy suggestions will be put forward according to the changes in residents' basic living consumption level. This tax reform highlights the new connotation of special deduction, and the first choice focuses on children's education, serious illness medical care and other aspects that people need most and are most concerned about. The reform will transform the classified tax system into a comprehensive and classified personal income tax system, and the next step will be to accelerate the start of the tax reform plan and start the revision of the personal income tax law. Liu Xxi, member of Chinese People's Political Consultative Conference and president of the Chinese Academy of Fiscal Science, believes that the individual tax reform must comprehensively balance the "money bag" of the state and the "money bag" of the individual. The adjustment of special deduction, tax rate hierarchy and taxation mode is subject to many factors, such as the need to attract talents, the need to simplify the tax system and the expectation of the society for fair adjustment, and it should be comprehensively considered and steadily promoted. The threshold of personal income tax is an easy-to-understand statement, and the more accurate expression is the standard of deduction of expenses or exemption from personal income tax. For the working class, it is the most direct and intuitive relationship with the level of personal tax burden, and therefore it has become the focus of attention from all walks of life. Raising the personal income tax exemption is a response to the public's call to reduce the personal tax burden, which is conducive to steadily raising the income level of residents and enhancing the people's sense of happiness and acquisition. The setting of exemption amount mainly considers the cost and basic livelihood expenses of taxpayers. The current personal income tax exemption was adjusted in 211. In recent years, with the economic development, rising prices and income growth, people's basic living needs and expenditures are also increasing year by year, and the current exemption standard has become too low. To ensure that people's basic living standards are not affected, it is necessary to increase the personal income tax exemption. However, the exemption amount is only one of the tax elements of personal income tax, and it is not in the main position in the establishment of personal income tax system. Simply raising the exemption amount, although simple and beneficial to the people, is not conducive to the improvement of the tax system, nor to the income redistribution function of personal income tax. Compared with previous personal income tax reforms that only focused on the adjustment of exemption amount, this government work report further proposes to increase the deduction of special expenses such as children's education and serious illness medical care, which is conducive to further improving the fairness of personal income tax and also means that the personal income tax reform has finally made substantial progress. The significance of increasing the deduction of special expenses lies in improving the tax equity among families with different burdens. For different individuals, even with the same income, they may face different family burdens such as children's education, medical care and housing, and their tax payment ability is not the same. It is beneficial to balance the tax burden of families with different burdens and improve the fairness of personal income tax system to include the expenses such as children's education and serious illness medical care that are most deeply felt by the general public in the pre-tax deduction range of personal income tax and set reasonable deduction standards. Raising the exemption amount and increasing the deduction of special expenses are the perfection of the pre-tax deduction of personal income tax, which is only one part of the personal income tax reform, not the whole of the personal income tax reform. Personal income tax is still facing the need of comprehensive deepening reform. Personal income tax is an important tax to raise fiscal revenue, and it is also one of the most favorable tools for the government to adjust income distribution. They complement each other and are indispensable. With the construction of Socialism with Chinese characteristics entering a new era, it is of great significance to accelerate the reform of individual income tax. It is an important starting point to resolve the main social contradictions in the new era, narrow the income gap and achieve balanced and full development; It is also the basic system of modern national governance system, which is conducive to enhancing people's sense of participation in national governance and promoting the realization of good governance goals such as social fairness and justice. 2. Individual income tax reform measures include: first, merging and simplifying some tax items. Appropriate income classification can reflect the taxpayer's real tax paying ability. It is possible to divide the current 11 income subcategories into several major categories, for example, to divide personal labor income into one category, including salary income, labor remuneration income and remuneration income. Divide property income into one category, including income from production and operation of individual industrial and commercial households, income from contracted operation and lease operation of enterprises and institutions, income from royalties, income from interest dividends, income from property lease and income from property transfer. Divide accidental income and other income into one category. Second, improve the pre-tax deduction system of "basic deduction+special deduction". At present, the pre-tax deduction of individual tax includes basic pension, medical care, unemployment insurance premium, housing accumulation fund and occupational annuity, enterprise annuity and commercial health insurance within a certain limit, etc., and will be included in commercial pension insurance in the future. The great progress of this reform is to increase the special deduction, include the expenses for supporting the elderly, serious illness medical expenses and children's education expenses, and reduce the burden of the "two-child" family. There are also voices that hope to include the interest expenses of housing mortgage loans, personal career development and re-education expenses into special deduction items. At present, there are many suggestions to set up a standard index adjustment mechanism for the threshold, and make dynamic and flexible adjustments in combination with the price level and inflation level to reduce the impact of economic fluctuations on the living standards of residents. There are also suggestions to implement the threshold of regional differentiation. Whether these suggestions can be implemented remains to be seen. Third, optimize the tax rate structure. On the basis of the tax rate structure stipulated in the current individual income tax law, the marginal tax rate will be appropriately adjusted, the progressive range will be simplified, and the applicable tax rates for various categories of income will be reasonably determined. Fourth, explore the introduction of household expenditure declaration system. Due to the change of family structure and the complexity of family economic structure in China, it is difficult to fully implement family comprehensive declaration in a short period of time. On the basis of maintaining the individual as the tax unit, the Association will gradually allow couples to jointly declare the expenses related to family support for the elderly, children's education, housing mortgage loan interest, etc., and deduct them between the husband and wife or by one party, and both husband and wife will pay taxes separately. Fifth, improve the tax-related information system and collection and management mechanism. First of all, we will promote the sharing of tax-related information in industry and commerce, public security, justice, customs, social security, banking, housing, securities and other departments, realize cross-departmental and cross-regional tax-related information networking, and establish and improve the income and property information system of natural persons. The verification of the authenticity of pre-tax deduction information also puts forward higher requirements for the tax department's data analysis, investigation ability and collection and management ability. In addition, it is necessary to improve the supporting policies such as the popularization of individual tax number, the binding of tax-related information and the constraint of credit system. II. What are the contents of individual income tax? Article 2 of the Individual Income Tax Law stipulates that individual income tax shall be paid on the following items: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from property transfer; (9) Accidental income. Individual income tax shall be calculated on a consolidated basis according to the tax year when individual residents obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income); Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly basis or by sub-item. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law. 1. Wages and salary income refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment or employment. That is to say, the income obtained by individuals, as long as it is related to their positions and employment, regardless of their unit's capital expenditure channels or in the form of cash, physical objects, securities, etc., are all taxable objects of wages and salaries. 2. Income from the production and operation of individual industrial and commercial households The income from the production and operation of individual industrial and commercial households includes four aspects: (1) Income from the production and operation of urban and rural individual industrial and commercial households that have been approved by the administrative department for industry and commerce and obtained a business license, engaged in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries. (2) Income obtained by individuals who have obtained business licenses with the approval of relevant government departments and engaged in school running, medical care, consulting and other paid service activities. (3) Income derived by other individuals from individual industrial and commercial production and operation means income derived by individuals from their temporary production and operation activities. (4) Taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals. 3. Income from contracted operation and leased operation of enterprises and institutions refers to income obtained by individuals from contracted operation and leased operation, as well as from subcontracting and subletting, including income in the nature of wages and salaries obtained by individuals on a monthly or per-time basis. 4. Income from remuneration for labor services refers to personal engagement in design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, translation, manuscript review, painting and calligraphy, sculpture, film and television, sound recording, video recording, performance, advertisement, exhibition, technical service, introduction service and economic service. 5. The term "income from royalties" refers to the income obtained by individuals from the publication of their works in the form of books and newspapers. The "works" mentioned here refer to works that can be published in books, newspapers and periodicals, including Chinese and foreign characters, pictures, music scores, etc. "Personal works" include my own works and translated works. Individuals who receive remuneration for their posthumous works shall be taxed according to the items they receive from remuneration. 6. Royalty income refers to the income obtained by individuals from providing the right to use patents, copyrights, trademarks, non-patented technologies and other franchises. The income from providing the right to use copyright does not include the income from remuneration. The income obtained by the author from the public auction (bidding) of the original or photocopy of his own written works shall be taxed according to the royalties. 7. Interest, dividend, dividend income, interest, dividend and dividend income refer to the interest, dividend and dividend income obtained by individuals who own creditor's rights and equity. Interest refers to personal deposit interest (the state announced that the interest tax will be abolished the next day on October 8, 28), payment interest and interest on various bonds. Dividends, also known as dividends, refer to the investment benefits that stock holders get from joint-stock companies on a regular basis according to the articles of association of joint-stock companies. Dividends, also known as company (enterprise) dividends, refer to the profits of joint-stock companies or enterprises that exceed dividends according to the profits to be distributed. Joint-stock enterprises should pay dividends and bonuses to individual shareholders in the form of shares, that is, distribute bonus shares, and tax should be based on the par value of the shares distributed. 8. Property rental income refers to the income obtained by individuals from renting buildings, land use rights, machinery, equipment, vehicles, boats and other property. Property includes movable property and immovable property. 9. Income from property transfer refers to the income obtained by individuals from transferring securities, shares, buildings, land use rights, machinery and equipment, vehicles, boats and other self-owned property to others or units, including the income obtained from transferring real estate and movable property. No tax will be levied on the income obtained from individual stock trading for the time being. 1. Accidental income Accidental income means that the income obtained by individuals is non-recurring and belongs to various opportunistic income, including winning prizes, winning prizes, winning lottery and other accidental income (including bonuses, objects and securities). Individuals who purchase social welfare lottery tickets and Chinese sports lottery tickets with a winning income of no more than 1, yuan shall be exempted from personal income tax. Those who exceed 1, yuan shall be taxed in full according to the accidental income items (the tax rate as of April 21, 211 is 2%). 11, other income in addition to the above 1 taxable items, other income should be determined by the the State Council municipal finance department. The financial department of the State Council refers to the Ministry of Finance and State Taxation Administration of The People's Republic of China. Other income items determined by the Ministry of Finance and State Taxation Administration of The People's Republic of China for taxation include: (1) Individuals obtained the honorary prize of China Academy of Sciences awarded by Cai Guanshen's Honorary Foundation of China Academy of Sciences. (2) The individual obtains the deposit bonus paid by the banking department at an interest rate and a value-preserving subsidy rate that exceed the national regulations. (three) the preferential income of the individual for paying the relevant insurance premiums by the employer. (4) Interest (or similar income paid in other names) paid by the insurance company to life insurers who have not been out of danger during the insurance period at the interest rate of bank savings deposits for the same period. (5) The rebate income or transaction fee return income obtained by individual shareholders from the securities company to attract large shareholders to open accounts in the company and pay part of the transaction fee obtained to large shareholders. (6) Individuals obtain that some units and departments distribute cash, physical objects or securities to relevant personnel of other units and departments in year-end summary, various celebrations, business contacts and other activities. (7) Resignation risk fund. (eight) individuals to provide security for the unit or others to get paid. If it is difficult to define which taxable income item an individual obtains, it shall be examined and determined by the competent tax authorities. Special sources of income will also be exempted.