The Theory And Empirical Research Of Tax Structure To Income Distribution

Economy of China runs into the "new normal",the focus of government turns from seeking rapid economic growth to enhancing growth quality and improving people's livelihood,Fair distribution of income is the prerequisite and the most important thing for improving people's livelihood.The 13th Five-year Plan of China puts forward that optimizing the income distribution,narrowing the income gap is the important foundation and security to embody social equity,promote China's consumption upgrade.In recent years,with China's rapid economic growth and national income growth,China's income distribution gap widen year by year,the gap between rich and poor becomes more and more serious.Since 2001,China's Gini coefficient has been more than the international cordon for several years,China's 2016 Gini coefficient reached 0.465,much higher than the level of 0.4.Tax policy is one of the government's policy instruments to adjust the distribution of income and promote social equity,but the role of is not fully realized.China's tax system shows weakness in the adjustment of income distribution gap and promotion of social equity,reform and improvement of the institutional problems and shortcomings of tax system are urgently needed.This paper analyses the influencing mechanism?affecting direction and degree?causality and dynamic effect of tax system structure on income distribution gap.In theory,optimization of the tax structure(selection of taxes,the primary and secondary collocation of taxes)can reach the policy objective of promoting the fair distribution of income and narrowing the gap between the rich and the poor.Turnover tax adopting a fixed rate,easy to shift and regressive,expands the income distribution gap;Income tax and property tax adopting a progressive rate,through "taking from the fat to pad the lean " of residents' income and property,reduce the income distribution gap.Therefore,the direct tax-based structure will promote fairness of income distribution,indirect tax-based structure will worsen fairness of income distribution.Empirically,this paper builds a measurement model with related data from 1994 to 2015,and explore the relationship between tax structure and income distribution by means of Unit root test,Cointegration test,Regression analysis,Granger causality test and Pulse dynamic response analysis.The conclusion is as follows:Turnover tax,income tax,property tax are reasons for the widening income distribution gap.Turnover tax and income tax worsen income distribution condition,and the first is stronger;Property tax worsens income distribution condition in the short run,and optimizes it in the long run;Added-value tax personal income tax and corporate income tax are reasons for the widening income distribution gap.Added-value tax and business tax worsen income distribution condition,and the first is stronger.Personal income tax and corporate income tax worsen income distribution condition,and the first is stronger.Consumption tax optimizes income distribution condition.Therefore,this paper proposes the following policy recommendations:First,China should gradually build a direct tax-based tax structure,constantly decrease turnover tax share,increase the income tax and property tax share to narrow the income distribution gap and promote social equity;Second,China should gradually perfect the personal income tax system,push structural cuts of personal income tax:Turn the classification levy into a combination levy of classification and comprehensive.Let family as a unit,determine deductions according to the actualburden of taxpayers.Increase the amount of personal income exemption,implement regional differences.Reduce maximum marginal tax rate and rate level,increase tax rate range;Third,China should generally levy property tax,real estate tax,inheritance tax and gift tax,strengthen social wealth distribution effect;Fourth,China should appropriately increase consumption tax share,turn the payment stage from production to retail,and perfect the scope of consumption tax,put new luxury online shopping into the base of consumption tax,exclude the necessities form the base of consumption tax.