A Study On The Effectiveness Of Tax System On Adjusting Individual's Income Distribution In The Transition

The taxation holds the important position in the modern society, and it is not only the major source of government revenue, but also the intention of public policy of government. As a basic economic system, the tax system has the strong influence on the society economy operating. Effective tax system is the important premise of one country's economic growth, therefore, it is very necessary to study tax system effectiveness. Adjusting individual's income distribution is the important function of tax system. Therefore it is very reasonable to study tax system effectiveness from the angle of income distribution. After review the document of tax system , we can understand an important meaning of to build the theory frame of tax system effectiveness .it can provide a new angle and logicality to study tax system for us ,and also can provide the profitable enlightenment for tax system reform.1. ContentsFirstly, we have elementary discussion on the tax system effectiveness of adjusting individual's income distribution. Then we obtain the standard of tax system effectiveness, we also construct a model to analyze the tax system effectiveness .From the fact of compose of our nation tax system, we study the influence on the individual's income distribution of tax system by empirical analysis of income tax, turnover tax, property tax and tax levy. We get conclusion that the tax system effectiveness of adjusting individual's income distribution is weak and find that there are some deeply contradictions and problems in our tax system. Finally, we provide some innovative advices.The paper is divided into eight chapters:The first chapter is an introduction. Expounding the purpose and meaning of the paper, and introduce the frame of study.The second chapter reviews the foundation theory of tax system adjusting individual's income distribution. We analyze the tax system adjusting individual's income distribution from the angle of equity and efficiency, government and market respectively, and we get the necessity and inevitability of tax system adjusting individual's income distribution in the period of transition.The third chapter offers the standard of tax system effectiveness in adjusting individual's income distribution. And we construct a model to analyze the tax system effectiveness. The model includes four parts: the reasonable objection, the strict device, the perfect mechanism and the correspondence to the environment.The fourth chapter examines the income tax rate and burden distribution of income tax. The tax rate is not consistent with the distribution of income, and the tax burden is not balance between the high income and the poor income. Therefore, the principle of capacity is violated. We can draw a conclusion that the income tax is weak effectiveness.The fifth chapter computes the level of influence on the individual's income distribution of the turnover tax, and concludes regressive data of turnover tax. The paper uses a sort of simple method and open data to get a persuasive conclusion. The sixth chapter reviews the influence on the income distribution of property tax. We integrate the property distribution of resident into our analysis, and we should to enhance the ability of adjusting the income distribution of the property tax.The seventh chapter examines the influence on the income distribution of tax levy. From the angle of New Institution Economics, tax levy is seen as a mechanism of tax system, and it influences the effectiveness of tax system. The weak tax levy leads to the tax evasion and influences the individual's income distribution.The eighth chapter gives us a conclusion of whole tax system about effectiveness. We provide some profitable innovation for the weak tax system effectiveness.2. Innovations(1) We constructed the frame of study in the field of tax system effectiveness. The model includes four aspects: reasonable objective, strict device, perfect mechanism and correspond to the environment .The environment is the restriction, and the device is the instrument to realize the objective. The mechanism is the bridge between the objective and device. Under the mechanism, tax system is operating perfectly.(2) In the past study, we only consider the influence of the income tax on the individual's income distribution. But in this paper we extend the study to the turnover tax, the property tax and the tax levy. The turnover tax plays an important role in the tax system, if we ignore the influence of it on the individual's income distribution, the conclusion we got is unilateral. The property tax has advantage of adjusting individual's income distribution, but it had been ignored in the past study. The tax levy is also an important aspect in the tax system, the lack of efficiency of the tax levy will lead to the weakness of tax system effectiveness of adjusting individual's income distribution.(3) We get some new concepts such as market equity and social equity, residual of taxpayer·and net residual of taxpayer(NR). These concepts can help us to understand the meaning of tax.Though we got some valuable conclusions, but we have some problems in the research, such as the visual field of research and data available.