Empiricai Study On Income Redistribution Effect Of Tax Revenue Means To The Urban And Rural Residents In Our Country

In recent years, with the pace of reform of the tax system of our country stepping up, scholars pay more and more attention to the redistribution effect of all means of taxation regulation of income. The voice of increase the proportion of income tax continues, but for the short period of income tax levying in China, it is difficult to be widely accepted. Furthermore, collection and management level is limited. So the reform is difficult. In this paper, on the basis of civil and abroad scholars’ theoretical study, combined with the actual situation of our country now, firstly, estimate the income redistribution effect and the progressivity of personal income tax and turnover tax of the urban residents,though operations of pre-tax and after-tax Gene coefficient and the K index. Secondly, make demonstration analysis to the income redistribution effect of personal tax and turnover tax of rural residents by the same methods. Thirdly, fit the income redistribution effects of urban and rural residents by the he various tax means. The study show that personal income tax is progressive with the tax function of adjusting the level of income. Furthermore, between2005-2011, the redistributive effects of personal income tax on the income of urban and rural residents gradually increase, but weakly progressive. The average personal income tax rate of urban and rural residents is between0.5%and0.9%.The overall tax burden is light. Between the year of2005and2011, the redistribution effect of transfer tax fluctuated in the range of-0.007to-0.011,which plays a regressive adverse regulatory role. It is greater than the regulatory role of personal income tax. The average tax rate of urban and rural residents’ turnover tax is between9.5%-9.9%. The overall tax burden is heavy. On the basis of the conclusions of this study, making policy recommendations, adjusting the tax structure, increasing the proportion of personal income tax in the total tax revenue, and correspondingly reduce the proportion of turnover tax,all of the above methods are important for the target of effectively playing the role of tax on narrowing the gap between rich and poor. As the proportion of personal income tax increasing, paying more attention to horizontal equity and vertical equity principle of taxation is the key point. However, the tax reform should be steady instead of rush, otherwise will not be conducive to Chinese economic and political stability.