Research On The Relationship Between Indirect Tax And Labor Income Share

As the ancient word says:"No scarcity inequality."The relative fairness of theincome distribution makes a significant contribution to the stable and healthydevelopment of the society, as well as the happiness of the people.It has been30years since the reform and opening up.Though the economic takes off in highspeed,the income distribution gap in China is growing.The income gap between10%of the highest income groups and10%of the lowest income groups has risen from7.3times in1988to23times,meanwhile the industry gap eight times,and thegeographical gap nearly three times, which will lead to instability in the society,impact the common prosperity goals realization and hinder the building of aharmonious society. How can the social wealth "cake" be distributed well? Faced withthe reality of the gap between the rich and the poor of our society beyond the policeknitting wool and the defects of regulation of direct taxes,the indirect taxes plays acrucial role in regulating income distribution.This paper focuses on the income distribution from the macro level.In thispaper,the effectiveness of indirect tax adjusting labor income shar is established as theresearch object,and it studies the the function mechanism of indirect tax adjustingincome distribution,and it proves that the indirect tax system adjustment of income isa little effective.At the same time,the paper studies the current situation of incomedistribution in our country,and the problems of indirect tax adjusting incomedistribution,and the paper also puts forward some corresponding policy andrecommendations.Based on the results from the previous studies,the author constructs the analyticalframework on the institution of United Property Rights of microcosmic foundation inChina indirect tax regulating income distribution. This paper argues that propertyrights determine the distribution of income.The joint property can ensure the owner ofthe equal property to realize the fairness trends of income distribution. Indirect taxesmay define and clear property rights to a certain degree, and adjust the relationship ofinterest between government, enterprise, worker, indirect tax affects the labor incomeshare by acting on the government, enterprises, workers’ income right.The content of this paper is divided into four parts.Starting from the presentsituation of domestic income distribution,the paper explores the reasons of decline inLabor income share. Secondly, from two aspects,the paper studies the mechanism of Indirect tax adjusting income distribution. Again, starting from domestic indirect taxregulation of income distribution status quo,by statistical analysis and indicatorsanalysis,the paper analyzes the domestic indirect tax regulation of the distribution ofincome, the lateral static and longitudinal dynamic contrast.And according to theempirical analysis based on the previous analysis, the paper discusses the relationof indirect tax and labor income share in our country. Finally, on the basis of theabove analysis, the paper puts forward indirect tax regulating income distributionand countermeasures of China, and provides an effective reference path forformulating the reasonable and fair income distribution system.