A Study On Levying Inheritance Tax In Our Country

Since the reform and opening up, China’s rapid economic growth, the gap betweenrich and poor is also continually expanding, it is evident that the Gini coefficient rising,although the results of the different institutions and scholars on China’s Gini coefficientestimates vary, but they are drawn one to the same conclusion: China’s Gini coefficienthas exceeded the international warning line:0.4. The widening of the gap between thisphenomenon, our government made a number corresponding revenue adjustmentpolicies, in addition to the reform of the personal income tax, inheritance tax as aregulator of the intergenerational transfer of income taxes are also included in the mainconsideration. In fact, as early as in the Republic of China over the country have beenlevying inheritance tax, and after the founding of New China, was to try to re-levy, butdue to various reasons, and always unsuccessful. One important reason lies in the lackof support for estate tax levy argument. At the same time, due to differences insocio-economic culture in our custody, alimony and other altruistic behavior, fairnessand efficiency evaluation methods, as well as other aspects of government behaviorpatterns differ materially from abroad.But in the course of the study for the inheritance tax in our country, reflect little morethan the differences. This study makes the flaw "China should levy inheritance tax," thelack of sufficient proof of this proposition strong argument, policy recommendationsrelated systems based on the lack of scientific and reasonable. Thus, from China’s actualsituation, the use of scientific research framework and research methods, to demonstratethis proposition, and related programs for the design, it has important theoretical andpractical significance.To this end, this paper describes the development history by domestic inheritance tax,estate tax levy on the background of the study; Secondly, combined with China’sspecific national conditions, to establish overlapping generations model of a60in thethree sectors (households, business, government) considering the labor and technicalheterogeneity, random death, three different bequest motives, capital gains tax, theresulting class taxes, pension insurance and other factors, the establishment of a largesample of simulated economy, the formation of the real estate tax policies applicable tothe research system; then, the conditions of our inheritance tax qualitative analysis todiscuss the timing of inheritance tax, followed by changing the size of the estate tax rateto calculate the Gini coefficient and its impact on the overall welfare of society, in order to demonstrate Are our inheritance tax to a certain extent, the distribution of income gapis too big a problem as well as improve the overall welfare of society. At the same timethrough an online survey to understand people’s attitudes and understanding ofinheritance tax, and thus the present model results some adjustments to make it more inline with China’s social reality..The main conclusions of this study showed that the inheritance tax in our country canhave a positive impact on income distribution effects and social welfare effects.Specifically, the paper argues that it should be investigated from a dynamic perspectiveof the estate tax levy or not, despite China’s current collection level and there is a certainlack of supporting measures, but the perspective of improving the collection andmanagement of dynamic levels, improve the supporting measures is a gradual process.If no inheritance tax, the tax authorities will not be able to get experience in estate taxcollection, it is difficult to establish the appropriate supporting measures. Instead ofbuilding levy inheritance tax can contribute to raising the level of administration andrelated supporting measures. In considering the results of this model, the estate tax ratecan be set at10%-15%.