Research On Tax Affect Income Distribution Of Basic Elements In Xinjiang

Since the reform and opening up, the economy of Xinjiang had developed rapidly in thebackground of China’s economic development strategy, and brought some economic andsocial issues. This paper is the research of tax affect income distribution of basic elements inXinjiang, the1994reform of the tax system has a profound effect on tax reform,which makessome adjustments to adapt to the socialist market economy. From1994to2011, Xinjiangaverage annual nominal growth rate of tax revenue amounted to19.57%, it exceeds theaverage annual growth rate of nominal GDP in Xinjiang. Rapid growth in revenue is the maindriver of revenue growth in Xinjiang. Taxation as an important means for the government toadjust the basic elements of the income distribution, it has not shirk responsibility. Accordingto the research of scholars allocated share of the labor that has sustained our share of laborallocation decreased.The main thesis is divided into three parts. Firstly, In terms of indirect taxes, thevalue-added tax and business tax are the major part of indirect taxes, and in terms of directtaxes, the corporate income tax and personal income tax are the major part. The proportion ofvalue-added tax has a downward trend, the proportion of business tax has an upward trend,the proportion of corporate income tax has a slight upward trend, and the proportion ofpersonal income tax changes little; Secondly, the share of after-tax basic elements of incomedistribution is less than the share of pre-tax basic elements of income distribution.Thirdly,Reducing the proportion of value-added tax and business tax will be differently lowerpre-tax share of labor allocation in Xinjiang, enhancing corporate income tax would reducethe gap between pre-tax, after-tax share of labor distribution, enhancing personal income taxwould reduce the gap between pre-tax, after-tax share of labor distribution.