A Research On How To Improve Income Distribution With Tax Adjustment Mechanism In China

In recent years, with the economic and social development, the pattern of income distribution in China has changed dramatically, the income gap of Chinese dweller increasingly expands, the Gini coefficient has exceeded the international alertness line, the wide distribution gap creates the negative effects to the development of economy and society, and becomes the focus of public concern. The imbalance in the income distribution is the result of social environment, economic system, policies and regulations. In view of taxation is the important component of national income and the important tool to adjust the income distribution, this thesis places an extra emphasis on how to improve the tax adjustment system of income distribution.The study logic of this thesis is as follows:to make an analysis on the reasons and socio-economic impacts on China’s present income allocation differences, based on the research documents both home and abroad, aiming at the tax adjustment on income distribution. By choosing tax regulation tools as the breaking point, the author tries to analysis the basic character, mechanism of action and existing problems by employing statistical method, thus to create a statistical model and find a resolution to improve the system.The thesis is divided into7chapters.Chapter One is the introduction, to collect research documents of tax regulation system on income adjustment, to put forward the background, research idea, method and framework of this thesis.Chapter Two is to make an investigation on the historical evolution of Chinese income distribution, and to point out the majors problems in recent distribution structure.Chapter Three is to learn from the experiences of the advanced countries in income distribution, and to table a proposal on how to narrow the income gap in China by employing tax as the major tool.Chapter Four is to dissect the operating mechanism of tax regulation, to indicate that many items of taxation in China are regressive and urgent improvement is needed.Chapter Five is to make a research on the impact of residents’incoming caused by the change of tax revenue, indirect tax, direct tax by setting up co-integration model.Chapter Six is to make a research on the impact of urban-rural income gap cause by taxation scales and fiscal expenditure in different areas by employing statistical analysis.Finally, in light of China’s actual conditions in the country the author offers the target, principle, method and policy space for the strengthening of tax regulation.The highlight of this thesis lies in the innovative works in four points, namely to make a systematical dissect on Chinese taxation structure, to establish tax analysis framework by employing quantities model, to prove that tax reform will not threaten financial security by estimating the capacity of individual income, to crack hard issue in taxation reform by establishing a new idea in tax collection and administration system.