Studies On The Tax Policy Regulating Urban-rural Income Distribution Gap

With the rapid economic development of China, the problem of urban-rural income gap has become increasingly prominent, which will influence the social development and restrict building a moderately prosperous society. As an important means of regulating the distribution of income, tax policy should play a due role in narrowing the urban-rural income gap. Low-income rural residents and the main indirect tax structure is China's basic situation at this stage. Under the perspective of indirect tax, this paper made a comprehensive analysis of the burden of indirect taxes and the actual tax burden between urban and rural residents, and investigated whether there is room for improvement by using tax policy to adjust urban-rural income gap. This article includes the following parts:The first part mainly describes the background and significance, status and development trends of domestic and foreign research. The second part focuses on the concept and the related theory of equitable distribution of income, and elaborates on the internal basis and transmission mechanism on the distribution of income tax adjustment, and describes the theory of indirect taxes and Tax Burden Shifting briefly. The third part is an analysis on the situation, using urban-rural income ratio and net income distribution index as indicators. Partâ…£describes the current situation and indirect tax policy, showing that the pact of indirect tax burden on the urban-rural income gap was significantly and there is room for improvement of China's tax structure. The fifth part presents a number of tax policy proposals and ideas.We should make both short-term and long-term adjustment, at the same time, tax policy must be coordinated with other policy measures to better regulate China's urban-rural income gap. Only in this way can we boost the realization of fair taxation environment and achieve a more equitable distribution of income.