Tax Regulation Mechanism On High-income Earners In China

In 2014, China’s Gini coefficient is 0.469.Compared with last year’s 0.473, although there is a slight decrease, but still higher than the internationally recognized warning line of 0.4, which shows that our existing inequality in income distribution. If we ignore this, it will generate many negative effects in economic and social. As a part of the social income redistribution, tax is an important means of national macro-control. Making different tax policies according to changes in the economic situation at different times, can make up for market failure and maintenance the distributive justice. The abnormally high income of high-income earners is one of the important reasons for the widening gap, so the study of tax regulation mechanism to high-income earners is of great practical significance.According to the above mentioned, this article first introduces the two most important concepts: high-income earners and tax regulation. After the theoretical basis and mechanism of tax regulation is analyzed, this article illustrates the necessity and feasibility of tax regulation to high-income earners. Due to the high income has diversified, decentralized, covert features, so we need more taxes of different nature at different aspects play their effects in different ways to form a comprehensive, multi-link stereo tax regulation mechanisms.Then this paper, the development of tax policy in ancient times are summarized, can be found in our country that since the feudal era rulers have ideas of social justice.Due to the national data is not enough detailed, according to the 2014 Beijing and Anhui statistical yearbook data, this paper calculated the pre-tax gini coefficient and after-tax gini coefficient in this two districts, found in the existing tax regulation mechanisms regulating effect is relatively weak. The cause of this phenomenon are manifold. Finally, depending on the issue of our country’s current tax system tax regulation insufficient functional performance, combined with the experience and lessons of foreign tax control system development, this paper try to come up with a plan to establish tax control system from the whole tax structure to specific tax policy.