Analysis Of Redistribution Effects Of Direct Tax And Social Security System

Due to the individual endowment of initial resources,differences in acquired efforts,and inherent shortcomings in the market economy,the initial distribution of production results has led to an increase in the gap between the rich and the poor in society and increased factors of social instability.At this time,the government adjusted the income distribution gap through macroeconomic control and the use of fiscal revenue and expenditure policies,and strived to ensure that members of society shared the fruits of social development.However,fiscal policies in many countries have not alleviated income inequality and have been detrimental to redistribution.Therefore,in order to avoid falling into the middle income trap,achieve leapfrog development,realize investment-driven to consumption-driven economic transformation,and long-term social stability,it is of great practical significance to study the current status of China's income gap and the redistribution effect of various fiscal instruments.This article uses 2012-2016 data from China Statistical Yearbook and China Family Tracking Survey(CFPS)data to measure and analyze the current income gap status and the effects of redistribution of financial instruments under narrow and wide calibers,including personal income tax and corporate income tax,Property taxes,direct transfer payments,basic social insurance,medical care,and education and public services,and excavate the reasons and links for poor financial redistribution performance.Based on the above studies,the conclusions are drawn: 1.In recent years,the Gini coefficient has been declining,but it is always greater than 0.45,indicating that the current income gap of residents in China is large and the problem of inequality is serious.2.Under the assumption of tax burden shifting in this article,direct taxes,social security contributions,basic social insurance,social assistance,and public education and medical services are all progressive,achieving vertical equity.3.The average tax rate of corporate income tax,property tax,public education,and medical services is high,and personal income tax and basic social insurance are the lower.4.In terms of the redistribution effect,the direct tax is negative as a whole,of which,corporate income tax is negative,property tax and personal income tax are positive;transfer payments,basic social insurance and public services are positive,and social security contributions are changed from positive to negative.The research results provide some reference suggestions for policy formulation.The government should optimize the fiscal revenue structure,flexibly stipulate the social security contribution ratio,improve the minimum living security system,and improve the progressiveness of medical public services.