Research Of The Moderating Effect Of The Personal Tax

The income gap has become the bottleneck that restricts China’s economic development, but also become the key issues of social justice. How to break through this bottleneck, so the residents can share the fruits of development, has become a social hot issue; Academic research also carried out extensive research on this issue. Personal tax is an important component of the redistributive system, it is necessary to study the effect of the personal tax on income distribution.Personal income tax system itself has direct, progressive and tax-neutral qualities, as it is an ideal means of regulation; At the same time, the redistribution effect of personal income tax plays its role in the secondary allocation; Its moderating function to optimize the primary distribution form of income structure, does not affect the economic efficiency, and also contribute to the principle of fairness and efficiency of society.In theory, personal tax has good redistribution function, but its moderating function of the actual play will be influenced by other factors, redistributive effects would also be affected. Therefore, the effects of personal tax can be quantified by empirical research, as ease of objective analysis.Empirical analysis on "pre-tax income" and "after-tax income" of urban and rural residents and residents of the country as a whole, are based on different statistical standards, the analysis conclusion can show the actual moderating effect of the personal tax. Further analysis from the perspective of structure can find out the factors which weaken the redistribution effect of the personal tax; it has practical significance to the research.Analysis finds that:the redistribution effect of personal tax of residents is positive but weak. The major factors weaken the moderating effect of personal tax are:small amount of the total personal income tax revenue, urban social security, lack of personal income tax in rural residents, difficulty of the control of high-income group’s income, and difference of the structure of income and family members.