Tax And Equal Distribution Of Income In China

Personal income distribution is a very important index to measure a nation' s social and economic development .It can not only affect the stable and sustainable development of society, but also make great influence on people's benefit. In china, after more than 20 years' reform and opening to the outside world, great changes have taken place with income distribution. Especially in recent years, statistic data from many different research institutions indicate that Chinese Gini coefficient is close to or even outstrip 0.4, which is regarded as security line of income gap all over the world. Under the circumstance to pursue comparatively good living standard, the widening income gap gradually become a topic of general in China.At present, the key problems of income distribution mainly include huge gap between urban and rural areas, rapidly swelling illegal and unreasonable income, worsen situation on the impoverished people, people' s imbalanced psychology etc. Contributing the progress of reform, it is predicted that the trend of widening income gap will go on in the near future. Consequently, the contradictions in income distribution will be more and more intense. For this reason, it is high time to deal with the questions and make the income distribution more equal and reasonable.The imbalance in personal income distribution is one form of "market failure". So it is within the scope of macro controls. As a matter of fact, each government in the world wields many kinds of legal and economic tools to regulate personal income distribution. Taxation is one of the most often used and effective tools in market economy. In most developed countries, the governments generally set up a comprehensive, all-round tax system which consists of personal income tax, estate and gift tax, security tax to regulate income distribution. And personal income tax usually holds a dominant position in the whole tax system. Besides the consummate institutional arrangement of tax system, the strict and efficient tax collection and administration ensure distinguished effect of regulation on income distribution.However, the situation in our country is not so well. There are many problems to be solved imperatively. For example, the regulation of personal income tax and theconsumption tax is so weak; personal estate tax system is not perfect; security tax hasn't been levied and the taxation policy is not reasonable etc. It is thus obvious that we must solve the problems of existing tax system to improve the regulation on income distribution. From now on, it shall be the focal point of taxation work for its important and practical significance.According to such a kind of thinking, the article is made up of the six following parts: The first chapter introduces the basic theory of income distribution and tax regulation. In the first section the author first introduces the basic intention of income distribution and further defines the meaning of individual income distribution in this dissertation. Then the author discusses the meaning of fair income distribution. In the second and third section, author comment on the theory of personal income distribution of western and our country. The fourth section elaborates the taxation regulation mechanism for the realization of fair personal income distribution on the basis of the analysis of the role of turnover tax, income tax, security tax and estate tax for the regulation of income distribution. In the second chapter, the author compares the foreign personal income distribution model and mainly introduces the successful "Northern Europe model".From Chapter 3 to Chapter 6, the author tries to analyze the present condition of our personal income distribution and the practice of taxation regulation based on Chapter 1 then further puts forward the measure of the perfection of the taxation regulation of individual income distribution. The third chapter analyzes the current status of the individual income distribution in China. The first section concludes that income gaps in China have widen...