Families file tax returns in countries around the world

"Family declaration" is only a qualitative description in "Proposition 7 of the Chinese People's Political Consultative Conference". Therefore, the reporter cannot calculate the specific amount that can be deducted out of thin air. Here, we can only learn from the existing experience abroad to see how much impact it will have.

According to the data obtained from the article "For Reference", it can be seen that in some developed countries, the impact of "family declaration" is large enough to make some family members with relatively low incomes willing to give up work and take care of children at home.

Japan: The threshold for household declaration can be doubled

The latest revised tax rate in Japan in 1999 is divided into 4 progressive tax rates, which are 10% (below 3.3 million yen), 20% (3.3 million to 9 million yen) Japanese yen), 30% (9 million to 18 million yen), top tax rate of 37% (18 million yen or more).

According to the standard of 2003 in Japan, if it is a salary earner of a couple plus two children, then the threshold of his personal tax becomes 3.842 million yen (basic tax exemption 380,000 yen, spouse 380,000 yen for tax exemption, 380,000 yen for spouse exemption, 380,000 yen for dependents, 630,000 yen for dependents, 1.308 million yen for employment income, and 384,000 days for social insurance contributions Yuan).

The threshold is 2.83 million yen if it is a salary earner of a couple plus one child; if it is a salary earner of a DINK family without children, the threshold is 2.2 million yen. If you are a single salary earner, the threshold is 1.144 million yen.

According to the 2003 tax reform plan, the above thresholds will be lowered to 3.25 million yen, 2.2 million yen, and 1.566 million yen, respectively, except for single-income earners.

A simple calculation shows that: before the tax reform in 2003, in Japan, with the same income, the individual tax threshold for a family of four was 3.842 million yen, while the threshold for a single person was only 1.144 million yen. For the Japanese yen, the former is 3.36 times that of the latter; after 2003, this ratio was 2.08 times. Although the gap has narrowed a lot, it is still very obvious. It can be seen from this that Japan's strong "housewife" culture has strong economic factors in it.

United States: Various Income Deductions

The threshold for regular personal income tax in the United States varies with the taxpayer's filing status, family structure and personal circumstances, and there is no uniform standard. There are 5 filing statuses in the U.S. regular personal income tax, namely single filing, husband and wife filing jointly, widowed family filing, couple filing separately and head of household filing.

The standard deduction varies by tax filing status. In 2004, the standard deduction was $4,850 for a single filing, $9,700 for a couple filing jointly or for a widowed household, $4,850 for a couple filing separately, and $4,850 for a head of household filing. $7150. The standard deduction is also humanized. If there are dependents, each dependent will deduct $800; if a married taxpayer is over 65 years old or blind, the annual deduction can be increased by an additional $950 or $1,900; unmarried taxpayers Taxpayers over the age of 65 or who are blind can increase their annual deduction by $1,200 or $2,400.

In the United States, various tax-exempt incomes include: gift and inheritance income, certain scholarships, compensation for injuries and illnesses, income from interest on state or municipal bonds, and 13 other items. Business deductions include: allowable expenses for operating a business, individual contributions to individual retirement plans and medical savings accounts, 50% of self-employment tax paid, moving expenses for changing jobs, divorce or separation alimony, There are 16 items including interest expenses on education loans and expenses on higher education (including continuing education).

Germany: There are many individual tax relief items

The deduction items in the deduction system of various countries in the world generally include three parts: cost, living expenses and personal tax exemption. The form of deduction of costs and expenses is usually listed as actual expenses or within the limits. The deduction of living expenses is the core content of the deduction system. Most countries deduct the deductions based on factors such as dependents, married or unmarried, and age. Personal tax exemption is mainly set up to reflect the principle of quantity, energy and fairness to give preferential relief to certain income.

For example, in Germany, its tax-free allowance (2002) includes: (1) The basic tax-free allowance is 7235 Deutsche Marks (Note: The Deutsche Mark was merged into the Euro in 2002, and the conversion rate at that time was 1.95583:1; (2) due to The tax-exemption allowance for work expenses is 1,044 Deutsche Marks; (3) The allowance for other expenses is 36 Deutsche Marks; (4) Insurance premiums. The allowance for work-expenses also takes into account: (1) Expenses for applying for work; (2) Travel expenses to and from work ( Calculated by distance); (3) Work supplies (including computers, bookcases, etc.). If the above is more than 1044 German marks, it will be calculated according to the actual expenditure. , buying handouts, paper, pens, ...) up to 920 Deutsche Marks.

The deduction of personal expenses is mainly used to make up for the family's living expenses, and its design fully reflects the humanization. This deduction is a sub-item deduction and a standard deduction The greater of the two is the sum of the personal and dependent deductions. Itemized deductions include: medical expenses that exceed 7.5% of AGI, state and municipal personal income tax, property tax, and loan interest expenses for the purchase of self-occupied residences (only Limited to 2 sets), charitable donation expenses, family property accident and theft losses that are not covered by insurance exceed 10% of AGI, and other miscellaneous expenses exceed 2% of AGI, including personal career development expenses such as purchasing professional books, Vocational training fees, etc. 7 items. These deductions take into account all aspects of personal life and take into account the specific circumstances of each individual and each family. I would like to express my thanks to the two authors for their experience and to improve the content of China's Individual Income Tax Law!)