The Policy Recommendations Of The Inheritance And Gift Taxes In China

Since reforming and opening up in1978, the economy of China has developed rapidly. The country’s economic strength has increased markedly,and the income and life quality of Chinese has been increasingly improved. In2013, China’s GDP was56.8845trillion yuan and per capita disposable income was18,311yuan, reaching the mid-ranking developed countries. At the same time, in2013China enjoyed the most billionaires in the world, with assets exceeding$2billion, the rich reaching3,000billionaires. The fruits of reform and opening up has been concentrated in the hands of a few people, the wealth gap is widened. In the beginning of Reform and opening up, China’s Gini coefficient was0.3, however, from the released national data in2012, the country’s Gini coefficient reached0.5, exceeding the security cordon0.4. The risk of social unrest exists, because of polarization between rich and poor. Therefore, it is imperative to reduce the wealth gap and promote social equity and building a harmonious society.Bequest taxes (inheritance and gift taxes collectively) is one of property taxes, given the task of equitable distribution of social wealth and regulating social inequality, which has been adopted by two thirds of the countries in the world. Currently China does not levy, but the tax levy bequest topic about whether China levy or not, has repeatedly been put on the agenda. However, it is to be shelved due to various reasons, after unsuccessfully conclusion. At present, China’s discussion mainly focused on its nature and the theory, and few thesises take advantage of the data to analyze bequest tax. This thesis use a lot of statistical data to analyze the actual situation in China in another perspective, and draw on typical bequest tax policy and reform in other countries and regions to analyze China’s current tax levy difficulte sitiation and propose solutions to it.This paper is divided into four parts. The first part is the preface, which introduces the background and significance of this research, innovation and logical structure analysis method adopted by this paper, research paper, article ideas and shortcomings. The second part is the bequest tax theories and models, introducing the basic nature of the bequest tax and tax theory, summing up the impact of the inheritance tax on personal economic situation, discussing the bequest tax levy mode and match-up model. The third part is the inheritance tax comparison with and reference to other countries. This part selects U.S. carrying out total inheritance tax system, Japan implementing inheritance type, Italy implementing a mixed tax system and Taiwan which share the same root with China to analysis bequest tax system. The fourth part is mainly the discussion on the feasibility of levying taxes bequest. This section, based on China’s current economic development situation, selects some representative data to illustrate the actual situation, combined with the national and regional policies and reforms, to analyze the necessity, feasibility, difficulties and solutions of levying inheritance taxes. The third and fourth parts are the key part. The third part analyzes the characteristic of typical national and regional policies, while the fourth part utilizes of the results of the analysis of third part for further discussion.In this paper, the following aspects are explored:first, it utilzes standard analysis methods to deeply analyze the impact of the introduction of the inheritance tax on state revenues, personal economic situation as well as the community. Second, it deploys comparative analysis method to analyze the typical bequest tax policy and reform in other countries and regions. Third, the method of data analysis was uesd to give a detailed description the necessity and feasibility of economic parameters of China’s current bequest tax, while the plight of China’s current equest tax levy and solutions to the diffculties are exploit.