Theory of rights. Those who hold this view believe that paying individual income tax is the right of every citizen (China). If the deduction standard is raised, some citizens will not be able to exercise their tax rights because they cannot reach the threshold.
Obligation theory. People who hold this view believe that it is the legal obligation of every citizen to pay personal income tax; No one can escape this obligation.
Honor theory. This view is related to and based on the right theory, but it is different from the right theory. This view holds that every taxpayer is proud of being able to pay taxes for the country, and the country should not deprive any citizen of this sense of honor in any way. Reflected in the attitude of adjusting the personal income tax deduction standard, it is required to maintain the existing deduction standard unchanged, or even lower the deduction standard, so that more people can pay personal income tax and get the corresponding sense of honor.
Fiscal revenue theory. According to this view, the main function of personal income tax is to obtain fiscal revenue for the government, and other functions are its by-products, which are naturally produced by the government in the process of taxation.
Narrow the gap between the rich and the poor. At present, the motivation of most people to amend the individual income tax law is to narrow the gap between the rich and the poor in society. They think that the rich should pay more taxes and the poor should pay less or no taxes. The best way is to raise the deduction standard of personal income tax, and they think that if the poor don't have to pay taxes, their income will increase accordingly, and the gap between the rich and the poor will be narrowed to some extent.
The theory of safeguarding human rights. At the hearing of the National People's Congress, Professor Liu Jianwen clearly pointed out that the collection of personal income tax should be based on the protection of human rights, that is, first of all, to ensure that people do not pay taxes for income that meets basic needs. There are many people who hold this view.
Then, what is the function of personal income tax, and what is the impact of adjusting the deduction standard of personal income tax on giving full play to its function? This paper intends to make a preliminary discussion on this issue in order to consult academic colleagues.
One,
Undoubtedly, the taxpayer of individual income tax has the right to pay the tax payable to the state according to law, but even if the state stipulates that it should be fulfilled and cannot escape, it seems that it is more appropriate to call it a right than an obligation. Of course, we do not deny that taxpayers not only have obligations, but also enjoy certain rights in the process of paying taxes, such as the right to know and the right to refuse to pay more than the amount they should pay. However, the right in this sense seems to be different from whether the tax payment behavior is a right or an obligation as a whole. The definition of the word "right" in the legal dictionary published in China is: "The law gives people the right to realize their interests. ..... From the usual point of view, right is the permission or recognition given by law to the subject of right to act or not to act. " Its essential feature is that the subject of rights can be behavior or not. If the actor does not think that an act will be punished by law, then it can hardly be said to be a right, but a legal obligation, because the obligation is "the constraint of the action or omission of the subject of legal relationship". In other words, obligation is something one must do. If he doesn't do it, the government will force him to do it, and if the obligor wants to resist or escape, he will be punished. China's Constitution clearly stipulates: "China people and China citizens have the obligation to pay taxes according to law." The Law on the Administration of Tax Collection also clearly stipulates: "Units and individuals who are obliged to pay taxes according to laws and administrative regulations are taxpayers." Taxpayers and withholding agents must pay taxes, withhold and remit taxes in accordance with the provisions of laws and administrative regulations. It can be seen that in China's legislation, tax payment is regarded as a statutory obligation that taxpayers should perform, rather than a right that taxpayers can dispose of. In fact, all countries in the world now classify tax evasion as a crime and punishment. This shows that both China and foreign countries regard paying taxes according to law as an obligation that must be fulfilled. Taking tax payment as a right of taxpayers is actually equating the rights that taxpayers can enjoy in the process of tax payment with the whole tax payment behavior.
As for some people who think that the deduction standard of personal income tax is very high (in fact, this is relative), so that people who do not exceed the deduction standard cannot pay taxes to the state, thus depriving these people of their "sense of honor", it is only a very rare phenomenon and does not exist in the tax law circle. The reason lies in the misunderstanding of the nature of tax payment. There is also a subtext in the words of being a member: the richer the person, the more taxes he pays, and the more "honors" he has. This enthusiasm for encouraging people to pay taxes is understandable, but we can't just think that paying more taxes is more glorious. It also depends on whether the tax collected by the tax collection and management department complies with the law. If taxpayers create a lot of social wealth through honest and legal labor and pay a lot of taxes according to law, this is undoubtedly a good thing. If the tax collection and management department illegally asks taxpayers to pay more taxes, instead of stopping it, it is considered an honor, which is very inappropriate. This is not only an honor, but a connivance of illegal activities, which should be stopped. If you want to make more contributions to the country, there is absolutely no need to suggest that the country reduce the deduction standard of personal income tax. Donating money to socially disadvantaged groups or the state can also bring him a sense of honor. On the contrary, if the deduction standard of personal income tax is lowered, it will increase the tax burden of tens of thousands of other taxpayers in the country, which is not in line with the current trend of tax reform.
This view has something to do with China's tax structure. China's tax structure is characterized by indirect tax instead of direct tax. At present, the proportion of individual tax revenue in the total tax revenue in China is less than 10%, while commodity tax accounts for 60% ~ 70% of the total tax revenue. The biggest difference between direct tax and indirect tax is that taxpayers of direct tax cannot pass on their tax burden to others, while taxpayers of indirect tax can pass on their tax burden to others. So whether it is corporate income tax or value-added tax, business tax, customs duties, etc. Finally, it is achieved by reducing personal income and spending power. Because the tax burden of commodity tax is easily passed on, it will eventually be passed on to the end consumers. Therefore, even if an individual's income does not meet the deduction standard stipulated in the tax law, he is actually still paying taxes to the state, but under normal circumstances, this part of the tax is included in the commodity price and paid directly through the commodity dealer, and consumers are unaware of it. Because of this, some people think that the tax system based on indirect tax is extremely concealed, and the nominal taxpayer is not the actual taxpayer. This concealment and dislocation constitute a great disrespect for taxpayers' sense of honor. Therefore, if we reform the current tax structure with indirect tax as the mainstay, we will implement the tax structure with direct tax as the mainstay. In this way, concealment does not exist and misunderstanding disappears.
Second,
Whether personal income tax should be a means to adjust the gap between the rich and the poor has aroused great interest in recent years. And judging from the media reports, it seems certain that it has the upper hand.
Some authors point out that the main function of individual income tax law should be to adjust the redistribution of social wealth and narrow the income gap between people. Some scholars even compared the different roles of personal income tax in narrowing the gap between the rich and the poor in China, Britain and the United States, and concluded that China's income tax is too small to play its due role in narrowing the income gap. We can't deny that this kind of research is of great significance for promoting the reform and perfection of China's individual income tax law, but the key question is whether the main purpose of individual income tax should be to adjust the gap between the rich and the poor. In fact, the Gini coefficient reflects not only the income gap of people, but also the wealth distribution gap of people. Income does not equal wealth. Income can affect people's wealth, but it is not the only factor. The main reason for the disparity between the rich and the poor is the unreasonable initial income distribution. To a great extent, it is highly related to the stock of assets owned by individuals or families, while personal income tax is aimed at the flow of assets and cannot adjust the stock of assets. Secondly, the role of personal income tax in income adjustment is only to level the income of high-income earners, rather than to increase the wealth of low-income earners. Thirdly, the excessive progressive tax rate system of personal income tax-especially the higher marginal tax rate combined with the lower level of tax collection and management and weak tax awareness-not only strengthens taxpayers' tax evasion motivation, but also increases the collection cost, reduces the efficiency of tax collection and reduces the transparency of tax collection and management, thus limiting its role in regulating people's income gap. In fact, many rich people's income reflected in the payroll is not particularly high, and some people earn much less than their employees, and even receive a nominal salary. But this does not affect their majority position in the redistribution of social wealth. Therefore, the personal income tax, which is mainly used to adjust the income gap-even if we think it is a main function of personal income tax-can hardly achieve the purpose of narrowing the gap between the rich and the poor in society.
Theoretically speaking, personal income tax does have the function of adjusting income redistribution, but it is only a by-product, not the main function. Since its birth, its main function is to obtain financial revenue for the government. Therefore, even on the issue of adjusting the personal income tax deduction standard, an important factor considered by important fiscal and taxation departments is whether the national fiscal revenue will be reduced or how much, rather than whether it will effectively reduce the wealth of the richest people at the top of the pyramid. If it is really to narrow the gap between the rich and the poor, the government should first consider levying property tax or expanding personal income tax. The reason why the government is eager to adjust the personal income tax deduction standard at this time should be said that it is mainly to alleviate the growing social contradictions and psychologically appease low-income people, rather than narrowing the gap between the rich and the poor, because adjusting the deduction standard not only reduces the tax burden of low-income people, but also reduces the tax burden of high-income people, not to mention the benefits brought by adjusting the deduction standard (ranging from several yuan to one or two hundred yuan), which basically has no effect on narrowing the gap between the rich and the poor in society.
Third,
Historically, the main function of personal income tax is to obtain fiscal revenue. 1799, Britain was the first country to collect personal income tax. At that time, the purpose of collecting personal income tax was to borrow money to fight the war, and it was only levied on the upper and middle classes, and the tax rate was 10%. 1802, this tax has been cancelled. 1803, King Eddington of England introduced a new income tax and adopted the method of classifying the income according to the source. Of the five sources identified at that time, four are still in use today. But this tax was cancelled on 18 16. 1842, Pierre temporarily reintroduced income tax to solve the remaining fiscal deficit. However, Pierre opposed the policy of high tax burden on the rich, believing that it would make the rich stop running their businesses and even flee abroad. So he exempted the part below 150, and only taxed the part above 150, with a tax rate of 3%. At the same time, he also reduced indirect taxes to promote the development of manufacturing, trade and commercial sectors.
Before the American Civil War, there was no personal income tax, and the main sources of federal government income were customs duties and consumption taxes. But after the war began, the huge military expenditure forced the federal government to start looking for other financial resources. 186 1 year, the northern federal government promulgated the income tax law to enrich the military expenditure. According to this law, the federal government levies a personal income tax of 3% on those who earn more than $800 a year. However, because the expression of this law is not clear enough, it has not been implemented. A year later, the US Congress passed another income tax law and began to implement it. According to this law, the minimum tax rate for the part above $654.38+00,000 is 3%, and the maximum is 5%. This law was abolished in 1872, during which * * * collected $376 million, equivalent to 20% of the domestic tax revenue in the United States during that period.
1894, due to the decline of international trade, the tariff and consumption tax levied on imported goods decreased, and the US fiscal revenue was in a hurry, so the US Congress passed the personal income tax law again, stipulating that 2% personal income tax should be levied on the income above 4,000 US dollars. However, due to the provisions of the Constitution of the United States at that time, "no other direct taxes shall be levied except those directly proportional to the demographic statistics." 1895, the United States supreme court ruled in a judgment that income tax is a direct tax and should be shared according to the population proportion of each state. Therefore, the 1894 tax law was not implemented because it was unconstitutional.
19 13 years, the United States amended its constitution and gave Congress the power to levy personal income tax. At the end of the same year, Congress passed the first individual income tax law after the constitutional amendment, and the tax has developed rapidly in the United States since then. In the next 30 years, personal income tax is mainly applicable to a few high-income classes, with a wide range of tax exemption and a moderate progressive tax rate. During World War II, due to well-known war reasons, the United States drastically reduced tax-free items and raised tax rates. After the war, the United States ushered in the golden age of economic development, and its position as the world's number one economic power was consolidated and strengthened, and personal income tax continued to rise with economic growth. The personal income tax of 1939 is only about 100 billion dollars, the income of 1988 reaches 100 billion dollars, and the personal income tax of 1996 is 656.4 billion dollars. In recent years, about 45% of the federal budget revenue comes from personal income tax, which has become the most important source of income for the federal government and occupies an important position in the tax system.
Canada began to collect personal income tax in 19 17, mainly because of the sharp increase of various expenses caused by World War I, which prompted the federal government to consider collecting personal income tax. Even its personal income tax law is called the wartime income war tax law. This name was not replaced by the new income tax law until 1949. Japan's personal income tax was levied in 1887, and its main motive was to raise military expenditure, because since Meiji Emperor Mu Ren ascended the throne in 1868, the policy of "military power" has been implemented, and the policy of aggression and expansion at home and abroad has been regarded as the basic national policy. 1887 When the personal income tax was levied, the Japanese General Staff Headquarters formulated various plans to invade China, the most famous of which was the "General Plan for the Conquest of the Qing Army" put forward by the Director of the Second Bureau, Nana Ogawa Youer. It not only includes the battle plan of military occupation of Beijing, Nanjing and other places, but also puts forward that China should be divided into six parts with victory as an opportunity to finally destroy China. During the period of 1890, the cabinet adopted a diplomatic brief and a military opinion of the prime minister and friends from three counties, and established the concepts of sovereignty line and interest line, which later developed into "Manchu lifeline" and "Greater East Asia * * * glory circle". Korea has long been a Japanese colony. After years of hard struggle, 1948, the Republic of Korea was founded and began to establish a tax system. The income tax law was included in the eight basic tax laws promulgated that year. The experience of Canada, Japan and South Korea shows that the function of personal income tax should be to organize fiscal revenue, not to adjust the income distribution gap between people.
The development track of personal income tax in China is similar to that in Britain and America. China's personal income tax system began in the early 20th century. 19 14, the Republic of China promulgated the income tax regulations, but it was not really implemented because of the war to defend the country. 1935, the national government reintroduced the income tax law. The following year, the Legislative Yuan passed the Provisional Regulations on Income Tax, and the Executive Yuan promulgated the Detailed Rules of the Provisional Regulations on Income Tax, and the personal income tax system was implemented immediately. The National Government plans to levy taxes on wages and debt interest's income first, and other incomes will be levied from 1937. Thus, for the first time in the history of China, personal income tax was really levied. 1943, the Kuomintang government promulgated the Income Tax Law, which included personal income tax. People's Republic of China (PRC) was founded in 1949, but during the 30 years from the founding of the People's Republic of China to 1980, China did not establish an independent personal income tax system, mainly because of the highly centralized planned economy, low level of economic development, simple personal income distribution system, single income source, low personal income level and small income gap. From 65438 to 0978, China began to implement the policy of reform and opening up. In order to solve the income tax problem of foreigners working in China, the national finance and taxation department began to study the establishment of personal income tax system. 1980 September 10, the third session of the fifth national people's congress passed the first individual income tax law of new China. According to the law, tax revenue includes wages, salaries and interest. The taxable amount of wages and salaries is calculated according to the six-level excess progressive tax rate of 5% to 45%, and the other five categories are uniformly taxed at the tax rate of 20%.
In order to adapt to the development of individual industrial and commercial households and standardize the high-income earners among them,1In July, 986, the State Council promulgated the Provisional Regulations on Income Tax for Urban and Rural Individual Industrial and Commercial Households in People's Republic of China (PRC), which took effect in the same year. It is mainly applicable to industries such as industry, commerce, service industry, construction and installation industry, transportation industry, and urban and rural individual industrial and commercial households approved by the administrative department for industry and commerce. At the same time, in order to further regulate personal income and prevent the income gap among members of society from being too large,1On September 25th, 986, the State Council issued the Provisional Regulations on Personal Income Adjustment Tax in People's Republic of China (PRC), which came into effect on June 25th. 1987+ 1. According to the regulations, the taxpayers of personal income adjustment tax are China citizens living in China. The tax revenue includes eight categories, such as wages, salary income and income from labor remuneration, and the tax rate is 20% to 60%. 1 993 65438+1October 3 1 The Fourth Session of the Eighth National People's Congress passed the Amendment to the Individual Income Tax Law of People's Republic of China (PRC), which came into effect on 1994 65438+ 10/day. 1994 65438+1On October 28th, the State Council issued the Regulations for the Implementation of Individual Income Tax in People's Republic of China (PRC). 1994 implemented the personal income tax system, which comprehensively reformed the original personal income tax system, merged the personal income tax, personal income adjustment tax and individual industrial and commercial household income tax originally established according to the taxpayer type into a unified personal income tax, and improved it from the aspects of taxpayers, tax items, tax exemption items, tax rate and expense deduction, making it a relatively complete and unified personal income tax law. Since then, China has further improved the personal income tax system, mainly including collecting personal income tax on the interest of savings deposits, establishing an accounting system for individual industrial and commercial households, and how to collect personal income tax by adopting the annual salary system for business operators.
Fourth,
Although personal income tax can also achieve the purpose of adjusting income to a certain extent, some practices in reality often offset this effect to a certain extent.
First of all, with the economic globalization, people's income, especially the income of high-income earners, is gradually showing a multi-source trend, that is, the income sources are diversified. Their income comes not only from wages, but also from many other different categories, such as income from various investments. Because China implements a classified income tax system, different types of income adopt different tax rates. In this way, people may avoid paying taxes or reduce the amount of tax payable by confusing different types of income (applying different tax rates). On the other hand, for income from abroad, it is often difficult for tax authorities to find out because of the difficulty in tax collection. Therefore, people may avoid paying taxes by confusing domestic and overseas income. Some foreign-invested enterprises evade the obligation of withholding and paying personal income tax by paying personal wages and salaries that should have been paid by domestic enterprises by overseas affiliated companies (parent companies). In the actual collection and management, some grass-roots tax collectors failed to comply with the requirements of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Withholding and Paying Individual Income Tax by Foreign-invested Enterprises and Foreign Enterprises to Overseas Enterprises (Guo Shui Fa [1999] No.241), resulting in the loss of national tax revenue.
Secondly, high-income earners are more qualified than low-income earners to take advantage of loopholes in the tax law to evade their tax obligations. On the one hand, it includes taking advantage of the imperfections in the domestic tax law to evade taxes, on the other hand, it includes international tax agreements to achieve the purpose of paying less taxes. No country's tax law can be perfect, and there are inevitably various imperfections. High-income earners can often help them to pay less taxes by hiring experienced accountants and tax lawyers. The original intention of international tax treaties is to avoid double taxation of income, but high-income people can often use these international tax treaties to avoid taxes. For example, according to international practice, there are two standards for defining residents and non-residents in tax law: domicile and practice. However, China's Individual Income Tax Law stipulates: "Individuals who have a domicile in China or have no domicile but have lived in China for one year shall pay individual income tax in accordance with the provisions of this law on income obtained from China and abroad. Individuals who have neither domicile nor residence in China, or individuals who have lived in China for less than one year, shall pay individual income tax on their income obtained from China in accordance with the provisions of this Law. " According to this regulation, foreigners, overseas Chinese and compatriots from Hong Kong, Macao and Taiwan living in China who leave the country for more than 30 days at a time or for more than 90 days in a tax year (the "90-day rule") live in China all the year round and are not taxpayers. They only need to pay personal income tax on their income obtained from China. This will easily cause taxpayers to use their residence time to avoid taxes legally.
Third, the labor service places of enterprise representative offices and branches are inconsistent with the tax payment places, which may also cause foreigners to pay less or no personal income tax. At present, some large multinational companies often set up branches or offices of China companies or Asia-Pacific companies affiliated to Beijing and Shanghai in mainland cities. Their financial accounting is relatively simple, and the business expenses incurred are generally reimbursed. The salaries and subsidies of employees are all paid by the headquarters of China companies such as Beijing and Shanghai, and personal income tax is withheld locally. In this way, the tax payment place of foreigners is inconsistent with the actual place of work (the place where labor services are provided), which leads to the distribution of various subsidies and allowances to employees by representative offices or branches outside the headquarters outside the jurisdiction of the tax authorities of the two places, which increases the management difficulty; At the same time, considering that these companies and their employees actually enjoy the public service facilities in the workplace without paying taxes locally, it also violates the principle of fairness.
Fourth, many high-income earners are entrepreneurs or senior managers of enterprises, and they have the conditions to confuse personal income with enterprise expenditure in order to reduce personal income tax. The chairman or general manager of some small foreign-funded enterprises (in fact, individual or private enterprises of foreigners) often adopts such means as receiving only a small amount of salary but reimbursing a large amount of personal expenses in the company. On the one hand, they evade the obligation to pay personal income tax, on the other hand, they achieve the purpose of eroding the corporate income tax base by reimbursing personal expenses.
Fifth, in order to attract high-level talents, many places often formulate some regulations that are conducive to reducing the tax burden of high-income earners, so that they can legally pay less or not pay personal income tax. For example, according to the Interim Measures for the Administration of Special Awards for Senior Talents in Beijing Software Enterprises, senior managers and technicians in Beijing can spend 80% of their personal income tax paid in the previous year on buying commercial houses and cars, investing in high-tech enterprises in this city in cash, or increasing capital investment for their own enterprises. This policy was later extended to senior talents from Hongkong, Macau and Taiwan Province provinces who came to work in Beijing, as well as senior talents from all foreign-funded enterprises.
Sixth, the state has also formulated some unreasonable tax policies for some high-income groups, which is also inconsistent with the principle of tax fairness. For example, in some areas, personal income tax is approved for the whole industry of law firms, and the approved tax burden is obviously lower than the statutory tax burden. This practice does not conform to the spirit of the State Council's Notice on Approving the Opinions of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Strengthening Tax Collection and Auditing Collection of Individual and Private Economy (Guo Fa [1997] 12), which easily leads to unfair tax burden and is not conducive to the adjustment of personal income tax to high-income earners. In response to this situation, State Taxation Administration of The People's Republic of China issued a special document, clearly stipulating: "No region may implement the industry-wide approved taxation method for law firms." However, this document prohibits the implementation of industry-wide approved taxation for law firms, rather than completely prohibiting approved taxation. In other words, as long as the local tax authorities and judicial organs do not ask the whole industry to uniformly implement the approved tax collection method, it can be regarded as not violating the spirit of the document issued by Guofa [1997] 12. In fact, this article also stipulates: "The tax payable of law firms that are approved by local tax bureaus at the local and municipal levels and cannot be levied by auditing according to the provisions of Article 35 of the Tax Administration Law shall be determined according to the taxable income determined in the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Printing and Distributing the Individual Income Tax Provisions for Investors of Sole proprietorship and Partnership Enterprises (Cai Shui [2000] No.91)." In fact, he kicked the ball back to the local tax authorities, thus making the documents he issued basically a dead letter.
Five,
While ensuring that the function of personal income tax to adjust income distribution can be realized, we should also pay attention to ensuring that the basic life of taxpayers and their families is not affected, and the income used for basic living expenses does not have to pay personal income tax. In other words, the deduction standard of personal income tax should be improved with the improvement of living standards, otherwise the purpose of protecting human rights cannot be achieved.
On the close relationship between the determination of expense deduction standard and citizens' basic human rights, Professor Liu Jianwen made a wonderful exposition at the hearing held by the National People's Congress: (1) From the perspective of equal rights, the function of personal income tax is mainly to adjust the income of different income classes, thus narrowing the gap and promoting the realization of equal rights. If the expense deduction standard is set too low, it will increase the negative tax of low-income people, which is not in line with the purpose of the individual income tax law and is not conducive to protecting citizens' equal rights. (2) From the perspective of the right to subsistence, the minimum living conditions of citizens must be guaranteed, and the income belonging to the minimum living conditions cannot be taxed; If the deduction standard is set too low, it will inevitably damage the protection of citizens' right to subsistence. (3) From the perspective of the right to development, in today's harmonious society, advocating and protecting the right to development should be put on the agenda. As far as the deduction standard is concerned, in addition to ensuring the minimum living conditions of citizens, we should also consider the expenses required by citizens to promote the all-round development of society and enjoy the corresponding development results. If the cost deduction standard is set too low, it is obviously not conducive to the protection and realization of the right to development.
In this regard, in fact, all countries in the world have stipulated certain deduction standards to ensure that the basic livelihood of taxpayers will not be affected. For example, major countries in the world basically levy personal income tax according to family income, and stipulate very detailed deductions for family living expenses. In addition to setting deduction standards for taxpayers' household expenses, it also sets deduction standards for other items closely related to family development or improving quality of life. These deductions mainly include: education expenses, insurance, automobiles, computers and other high-tech consumables. In addition, some countries have formulated personal income tax deduction standards to promote the construction of traditional morality. For example, Thailand encourages taxpayers to get married, and taxpayers with spouses have more tax-free income than single taxpayers. Malaysia stipulates that parents' medical expenses can be deducted to a certain extent, as well as the cost of buying support equipment for their wives, children and physically disabled parents. The personal income deduction program in the United States is more perfect (though more complicated). According to American tax law, the pre-tax deduction of personal income tax is divided into standard deduction and enumerated deduction. The standard deduction method is the sum of basic deduction and additional deduction. The basic deduction varies according to the identity of the taxpayer. If you declare tax, this is a disabled person and you can enjoy additional deduction. For the enumerated deduction method, the items listed in the American individual income tax law include: huge medical expenses and disaster losses, charitable donations, rent expenses, interest on loans for self-occupied houses, investment interests, employee business expenses, local taxes, etc. In addition, the individual income tax law of the United States also stipulates the items of decreasing tax, that is, the items deducted from the taxpayer's income tax. These tax reduction items include: commercial credit, personal credit and foreign tax credit. Among them, personal deduction includes personal tax refund deduction and personal non-tax refund deduction. Deduction of personal refundable amount includes labor income deduction, income tax withholding deduction, excess social security tax withholding deduction, and small tonnage diesel vehicle owner deduction. Personal non-tax refund includes child adoption deduction, child tax deduction, real estate loan deduction, elderly disability deduction, relative care deduction, student hope deduction, lifelong learning deduction, qualified electric vehicle deduction and mandatory minimum tax deduction.
Six,
From what has been discussed above, we can see that the main function of personal income tax is to obtain fiscal revenue. While the government obtains fiscal revenue through taxation, it also regulates people's income distribution, thus making people's distribution of social wealth more reasonable. However, it is difficult to narrow the gap between the rich and the poor by raising the deduction standard. Paying personal income tax is the obligation of every taxpayer, not the right for taxpayers to exercise and dispose of it. Raising the deduction standard of personal income tax will not deprive taxpayers of their honor. At the same time, while implementing personal income tax, we should constantly adjust the deduction standard of personal income tax with the development of economy and the improvement of economic level, and re-enact a more perfect personal income tax law as soon as possible to make it fairer, better protect people's basic living rights, and be more conducive to people's conscious compliance.
From the internet. . . .