In early 2020, a sudden new coronary pneumonia epidemic has brought great impact to the world and China ’s economy, especially for the catering, hotel, tourism, transportation, and movie industries. Major economies have successively launched stable economic policies to deal with the impact of the epidemic. The United States signed a $ 2 trillion economic stimulus bill to support employee tax credits, delay employers ’payroll tax payments, resident cash payments, and create taxpayer fund pools to provide loans to businesses. Japan has formulated an economic stimulus plan of 56 trillion yen (approximately RMB 3.6 trillion), and plans to issue cash to households whose income has been reduced due to the epidemic. The Canadian government has issued a total of 82 billion Canadian dollars (approximately 403 billion yuan) of economic assistance programs to protect businesses and households from delaying tax payments and provide subsidies for low- and middle-income families.

According to reports, as of now, Nanjing, Ningbo, Jinan and other places have issued consumer coupons to promote consumption, and the total amount of consumer coupons has exceeded 4 billion yuan. As one of the troika driving economic growth, consumption should have more cities to introduce various consumption stimulus policies.

In 2020, tax reduction and fee reduction are important tasks deployed by the Party Central Committee and the State Council. The executive meeting of the State Council held on March 3 called for a phased increase in tax cuts and fees. The author believes that the increase in personal income tax (hereinafter referred to as individual tax) special additional deduction items can better combine the phased increase in tax cuts and fee reductions with stimulating consumption to stimulate economic recovery. The following is a detailed analysis of the feasibility and specific operation of the proposal.


I. There is a legal basis for adding additional special tax deduction items

According to Article 5 of the “Individual Income Tax Law”, the State Council may provide other tax reductions The situation shall be reported to the Standing Committee of the National People’s Congress for the record. Article 6 establishes a special additional deduction system for children ’s education, continuing education, critical illness medical care, housing loan interest or housing rent, and support for the elderly. The specific scope, standards and implementation steps are determined by the State Council; Notice of Interim Measures for Deductions (Guo Fa [2018] No. 41) stipulates: According to the changes in people ’s livelihood expenditures such as education, medical care, housing, pension, etc., the scope and standards of special additional deductions should be adjusted in due course.

It can be seen that the special additional deduction project currently clearly stipulates that there are children ’s education, continuing education, serious illness medical care, interest on housing loans or housing rent, and expenditure on supporting the elderly, but These types of expenditures are not limited. The State Council has the authority to increase special additional deductions.