The Design And Conception Of Estate And Gift Taxes In China

Estate tax and gift tax are the most important types of property tax, which have a long history and are common tax. Making a levy on estate and gift may regulate social wealth distribution, improve social fairness, maintain national tax sovereignty, and encourage public welfare. Since Reform and Opening up, we have made a rapid progress in economy, and citizens'income has enlarged fast, however, behind the success, wide gap between the rich and the poor has become the biggest problem. The significant problem that we must face is how to make use of taxation to improve social fairness and adjust distribution of income so as to construct a harmonious society. Levying estate and gift taxes have been discussed many times, but because of many reasons it has been postponed. This essay is based on the situation of China's economic and social reality, and analyzes the problems relative to levying estate and gift taxes, attempting to construct a proper tax system which fits our national situation.This essay is made up by four parts. The first part introduces the theory of levying estate and gift taxes, then analyses the theoretical foundation of levying it, the advantages and disadvantages of its forms. The main focus of the first part is the analysis of the effects of estate tax. In the second part of the essay, three countries are chosen to represent these types of System model, which are America, Japan and Italy, so as to analyse the features, estate and gift taxes with the model and tendency of the globe, which provides the experience for us. Through exploring of the necessity and possibility of levying estate and gift taxes and the difficulties its faces and its solutions, the third part discusses the preparation we have to make to start levying estate and gift taxes. The forth part drafts the principles of levying estate and gift taxes, basing on which to construct our own estate and gift taxes system.The essay makes an exploration in the following aspects. First, quantitative and qualitative analysis methods are used to analyze the economical effects of levying estate and gift taxes. Then, on the basis of comparative analysis on the principal nations which levy it, combing with our national situation, the elements of our own estate and gift taxes system are designed. Finally, using the standard individual income tax exemption of our nation for reference, our national estate and gift taxes exemption are set. About improving tax collection and management, further discussion is needed.