Research On The Influence Of Value Added Tax On Residents' Income Distribution

Whether it is horizontal or vertical comparison,it is an indisputable fact that China's income distribution gap is increasing.The report of the 19th National Congress of the Communist Party of China points out that in the new era,the contradiction between the people's growing needs for a better life and unbalanced and inadequate development has become the main contradiction in our society.Therefore,in order to solve this new contradiction,we must "adhere to the principle of distribution according to work and improve the system and mechanism of distribution according to factors".Tax policy has always been an important means for the state to regulate income distribution.Chairman Xi Jinping further proposed that the tax system reform should enter the deep water area in the nineteen major reports of the party.The function of tax system is further changed from"optimizing resource allocation,adjusting income distribution and promoting economic stability" to "optimizing resource allocation,maintaining market unity,promoting social equity and realizing long-term stability of the country".Correct understanding of the role of tax in adjusting income distribution and narrowing the income distribution gap,and as far as possible on the basis of the existing tax system,reform and design a set of tax system that can give full play to its functions and complement each other,is the inevitable choice for the next construction of the socialist tax system with Chinese characteristics.We should be fully aware that the tax system is an organic whole,and all kinds of taxes in the tax system must be interrelated and complementary.The whole tax system of our country is changing from efficiency to equity.Income tax and property tax are in the process of development and construction.If we ignore indirect tax at this time and only attribute the task of income distribution mediation to income tax and property tax,it is obviously incomplete.The value-added tax is the largest indirect tax in our country.Whether it will affect the income distribution of our residents,or how to change the income distribution structure of our residents,will be the focus of this paper.The collection of value-added tax runs through the whole process of material production and circulation.Theoretically speaking,it can not only affect consumption expenditure by changing the relative price of goods,but also affect factor income by changing the relative rate of return of factors through resource allocation.First of all,from the perspective of production links,the primary distribution is the basis of the formation of income distribution pattern,and the value-added tax will interfere with the resource allocation efficiency of enterprise production,affect production,and then affect the labor remuneration of workers in enterprises.Secondly,from the perspective of circulation,value-added tax belongs to turnover tax,and its tax burden has the characteristics of transferring along with commodities.However,China's value-added tax implements the principle of place of production,which leads to the cross regional turnover of value-added tax burden,the imbalance of value-added tax revenue distribution among regions,the inequality of local financial resources,and the government intervention in enterprise investment,which eventually affects the residents Income.Finally,from the perspective of consumption,the tax burden of VAT is "mixed",which is shared by factor providers,producers and consumers.Residents are not only the providers of factors,but also the consumers of goods,so they have to bear the value-added tax burden of the income source end and the consumption end at the same time.From the perspective of redistribution of tax burden,the transfer of VAT affects the income distribution of residents.The overall arrangement of this paper is divided into seven parts.The first chapter is the introduction.This part starts from the research background,and leads to the main problems of this paper by briefly describing the difficulties and challenges faced by China's current income distribution.Based on the analysis of the research background and problems,this paper expounds the theoretical and practical significance of the research.Next,by combing the existing research results at home and abroad,this paper makes a literature review from four perspectives of production,tax burden,value-added tax sharing mechanism and value-added tax reform path.Finally,the possible innovations and shortcomings of this paper are summarized.The second chapter is the introduction of the basic concept,theoretical basis of VAT and the current situation of income distribution in China.This chapter describes and summarizes the basic concepts involved in the article,the main theoretical basis supporting the research,and the current situation of China's income distribution structure.Among them,the theoretical basis of this study includes the resource allocation theory under the primary distribution,the tax incidence theory under the general equilibrium framework,the income distribution theory based on the distribution justice and the optimal commodity tax theory under the efficiency and fairness.The third chapter is the research on the influence of replacing business tax with value-added tax on the income distribution of Chinese residents.This part mainly measures the impact of replacing business tax with value-added tax on Residents' income distribution from a macro perspective.First,it introduces the process of replacing business tax with value-added tax,and then calculates the changes of Gini coefficient,MT index and Kakwani index of residents' after tax income in the two years before and after replacing business tax with value-added tax by combining macro data with micro data,It is concluded that replacing business tax with value-added tax is helpful to optimize the income distribution structure and narrow the income distribution gap.The fourth chapter is the research on the impact of VAT on the share of labor income in the primary distribution.This part is mainly from the perspective of functional income distribution to clarify the role of VAT in the primary distribution.Based on the mechanism of value-added tax on the share of labor income,this chapter uses the database of China's industrial enterprises to analyze the empirical model and concludes that reducing the wedge of value-added tax policy is conducive to reducing the loss of overall social resource allocation and increasing the share of labor income.The fifth chapter is based on the hypothesis of mixed transfer of value-added tax redistribution research,mainly to accurately measure the transfer of value-added tax burden.This part is mainly based on the idea of general equilibrium,under the premise of using mixed transfer assumption,decomposes the tax burden of value-added tax into the tax burden of income source end and consumption end.In the application of the model,it systematically introduces the construction framework of CGE model and the compilation of social accounting matrix.Finally,it simulates and calculates the transfer of VAT burden through CGE model,and concludes that the VAT burden borne by factor providers first decreases and then increases with the increase of income,while the VAT burden borne by consumers decreases with the increase of income;The total value-added tax burden of residents decreases with the increase of income,showing regressive.The sixth chapter is the research on the impact of cross regional transfer of VAT on Residents' income distribution,and discusses the impact of the imbalance of horizontal distribution of VAT on Residents'income share among regions.In this chapter,based on the theoretical framework of interregional income share and value-added tax cross regional transfer,the pvar model is established by using the relevant statistical data.It is concluded that the aggravation of value-added tax cross regional transfer will expand the income gap of interregional residents,and the different income share of interregional residents will react on the value-added tax cross regional transfer.There is interaction between the two.The seventh chapter is the reflection on the impact of international reference and VAT on Residents'income distribution.This chapter selects Germany as an example of the European Union,Canada,Singapore,Japan and other developed countries,horizontal comparative analysis of their more perfect value-added tax(or consumption tax,goods and services tax)system,to provide experience for China to improve the income distribution pattern through the value-added tax system.At the same time,based on the empirical analysis of the impact of value-added tax on Residents' income distribution from the aspects of production,tax destination and cross regional circulation,this paper puts forward relevant and supporting policy suggestions to continue to deepen the reform of value-added tax,including simplifying and optimizing the structure of value-added tax rate,improving the sales deduction management of small-scale taxpayers,standardizing and cleaning up the tax preference of value-added tax Starting from the collection rate of the starting point,we should give tax preference to small-scale taxpayers,establish a scientific and reasonable value-added tax distribution system and other supporting measures.The main innovation of this paper can be summed up in the following three aspects:first,not only from the perspective of large-scale income distribution to explore the impact of value-added tax on income distribution of residents,but also from the perspective of functional income distribution to analyze the impact of value-added tax on income distribution of residents.This paper introduces the value-added tax into the primary distribution system,pays attention to the influence of the value-added tax on the income distribution of residents in the primary distribution,and explores the mechanism of the value-added tax on the share of labor income.Second,under the assumption of mixed transfer,this paper analyzes the transfer of VAT burden.The hypothesis of mixed transfer is more in line with the thinking of rational people and closer to the real life.Based on the assumption of mixed transfer,this paper uses the computable general equilibrium model to analyze the source side and user side tax burden of residents in different income classes under the macro closed condition of developing countries which is in line with China's national conditions.Third,the impact of value-added tax cross regional transfer on Residents' income share is considered in the framework of the impact of value-added tax on Residents' income distribution.This paper discusses the influence of value-added tax cross regional transfer degree on Residents' income share,and uses panel vector autoregressive model to investigate the interaction between value-added tax cross regional transfer degree and residents' income share in many years,to explore whether there is mutual polarization between them,and to explore whether the reform of value-added tax sharing system is conducive to the balanced development of residents' income among regions.This paper,from the theoretical value and practical value,forms the theoretical framework of the impact of value-added tax on the distribution of residents' income.It comprehensively evaluates the impact of VAT on the income distribution from two aspects:income distribution share and income distribution gap,and puts forward the feasibility plan of deepening the reform of value-added tax based on the consideration of effciency and fairness.At present,the initial work of the state-owned reform and increase has been completed.The next reform of VAT should focus on the adjustment of the tax rate,the simplification of tax rate levels,the standardization of tax preferences,the upgrading of collection management and the reform of sharing system.Through empirical quantification of the impact of VAT on the distribution of residents' income,we can analyze and explore the reform path of VAT more accurately,and reduce the distortion of income distribution caused by VAT.Meanwhile,when considering the influence of value-added tax on income distribution,we should use other financial and tax methods to reduce the income gap of residents in multi-dimensional and multi-way way,so as to realize the comprehensive adjustment of income distribution.