Study On The Personal Income Distribution And The Policy Selection Of The Personal Income Tax In The Shifting Period

Fair distribution is the moral base of the market economy. As the reform of the Chinese economy system develops to a deeper stage, the difference between the personal income brackets of Chinese citizens becomes increasingly widened, which has been the focus of attention of the Chinese economists. Thus it is both theoretically and practically significant to discuss how to use the tax method to adjust personal income distrioution.The widening of the personal income difference brings a challenge to the existent tax system. Though our nation attached great importance to the adjusting function of taxes in the shifting period, to some degree the existent tax system resulted in or strengthened the personal income which conflicts with the fair distribution mentioned above. This article takes the personal income of Chinese citizens as the main object of study, analyzes at some length the theoretical frame of citizens' personal income, the actuality of the Chinese tax system in the shifting period and its reforming direction and channel, and proposes that on the premise of grasping two basic relationships and defining three basic thought trains, a tax system for adjusting the personal income distribution be established. This tax system shall play the main emphasis on the personal income, have distinct gradation of various taxes and adjust the personal income properly. Finally this article discusses in depth how to reform the personal income tax system, establishes social security tax and reconstructs the property tax system. In the author's opinion, by constantly perfecting the tax system using the method mentioned above and harmonizing relevant policies, the personal income distribution of Chinese citizens will eventually find a proper balance point which will alleviate the wealth distribution contradictions and promote the harmonious and healthy development of society as well as economy.