Study On The Redistributive Efficiency Of Individual Income Taxes In China

As Chinese market economy is deepening and national economy is developingrapidly, a variety of types of economy have emerged. The forms of individual incometaxes are recessive, diversified, completed with a bigger and bigger gap amongdifferent sorts of social individual income. On one hand, it goes against the expansionof domestic demand which can promote the sustainable development and stablegrowth of economy; on the other hand, the unfairness of income would impact thegross national happiness and sharpen social conflicts, which are harmful to socialharmonious and stable development.Individual income tax is the main body of our national tax system which isspecial in charge object, charge scope, tax rate design, tax model and collectionmethods. It is the main tax tool of the progress that government adjusts the incomedistribution and has an irreplaceable function to narrow the gap. However, in recentyears, we can find censure about the regulatory function of individual income tax.People are suspicious that whether the individual income tax can regulate the gap andthe magnitude of its enforcement. In fact, many factors have together restricted itsregulatory function through my serious research.It’s aimed at replaying the role of individual income tax to adjust individualincome distribution. I have analyzed the features of individual income tax system andthe theory base with mechanism of action on the function of the individual income tax.My thesis begins with the basic theory of individual income tax. And this thesis hasfocused on the specific adverse factors currently and analyzed the mechanisms ofaction. As far as the solutions are concerned, I have proposed learning the advancedexperience about individual income tax system and tax collection from other countries.Also, there are my suggestions on solving the restrictive factors of all aspects andlinks in the view of charge system, tax collection and tax environment.From a broader view to discuss this issue, we refer to the whole tax system notthe sole individual income tax. Then we can analyze this issue comprehensively andsolve the adversely restrictive factors overall. Firstly, I have elaborated my advice on the specific rules and collection methodsof individual income tax based on the deep analysis of its system; secondly, Iproposed to establish a comprehensive, synthetical and systematic tax adjustment andcontrol system, which can emphasize the necessity of the establishment and thespecific tax types, charge object and comprehensive regulatory methods; thirdly, Iattached much importance to the tax environment and proposed lots of opinions aboutsupporting measures. In short, I have suggested a feasible way which can intensify theregulatory function of individual income tax, solve the income distribution overall,successfully play the role of regulatory function, promote the justice of individualincome distribution, narrow the gap between the rich and the poor, and guarantee thesociety impartial.