The Research On The Effect Of Tax Income Redistribution

Along with our country go into the stage of reform and opening up after the third plenary session of the eleventh in 1978,economy of China is rapidly developing. The living standards and income level of residents has significantly increased, but income distribution gap of residents are widening, enlargement of residents’ income gap caused serious influence to the entire social and economic development. Thus narrowing the income gap is not only the current economic difficulties in the theory of research, but also the government taking it into account. The tax as an important means for governments to adjust income redistribution, should play an active role in the redistribution of income tax system. So the research on the tax income redistribution effect, which not only enrich the theory on tax adjusting income distribution in China, but also helps government to identify the present situation of income redistribution, which provided strong policy support to narrow the income gap between residents and solve the wealth polarization.This article introduce the tax income redistribution of relevant theoretical basis, and analyze our country tax revenue redistribution ability, and study whether tax play a better role to narrow the gap between the residents connecting with urban and rural residents’ income of 17 cities in Shandong province, in order to put forward reasonable Suggestions to promote economic development. This article is divided into six parts. First chapter illustrate the importance of tax playing income redistribution beginning from introduction the research background and significance. The relevant theoretical research at home and abroad were reviewed、red and collected. In addiction to put forward the innovation point and the insufficiency of this paper. The second chapter introduce related theoretical basis、theory thought and transmission mechanism of tax playing income redistribution. Due to failure of market fluctuations, it is government to adjust and control revenue redistribution using macro means such as tax. In the process of income redistribution, income tax 、turnover tax and property tax influence the residents’ income distribution through different pathways. The third chapter analyses the ability of tax playing income redistribution. The main body in the current tax system is based on turnover tax, individual income tax andproperty tax accounting for less, which makes the individual income tax can not play the full positive role of regulating income distribution. Turnover tax of the subject status has regressive on resident income distribution. So overall, residents’ income gap in China is still not improved. The fourth chapter mainly study tax the empirical analysis through urban and rural residents’ income dates and tax dates from 2007 to 2013 in Shandong province. The results found in both the tax on the scale and structure of Shandong province didn’t play the positive role of tax redistribution function. Personal income tax has no significant effect on the income gap between urban and rural residents. The turnover has a significant effect on the income gap between urban and rural areas, but it is positive adjustment. Namely, the more increase of turnover tax, the more widening of urban and rural residents’ income gap. Fifth chapter mainly conclude and puts forward Suggestions to perfect our tax system structure. In order to narrow the income gap between urban and rural areas. Finally, the sixth chapter makes overall conclusion and prosper on the research of this paper.