Analysis Of Income Adjustment Effect Of Personal Income Tax

With the deepening of China's reform and opening up,China's economy has reached a new level.In 19 th report,General Secretary Xi Jinping pointed out: "The main contradiction in our country at this stage is the contradiction between the growing needs of a better life for the people and the development of an imbalanced economy." The continuous improvement of the income level of our residents and the constant widening of the income gap among residents are also one of the manifestations.In this regard,our country should actively take various measures to regulate,and tax revenue,especially with the adjustment of income distribution functions of personal income tax is particularly important.However,from the actual situation,the current adjustment effect of residents income distribution is not satisfactory,and does not meet China's personal income tax "improve the income level of low-income people,expand low-income people,regulate high-income earners " a tax reform overall principle and direction.For the current situation of resident income disparity in our country and the effect of personal income tax adjustment,this article uses the method of combination of normative analysis and empirical analysis to conduct a detailed discussion.First of all,this article uses the Gini coefficient of China's urban residents after-tax income and the highest and lowest income ratio of urban residents to illustrate the current situation of the income distribution gap in our country.Then through the relevant statistical yearbook data,calculate the Gini coefficient,MT index and ? index of urban residents before tax and after-tax income,come to the conclusion that the regulation effect of individual income tax of current classification tax system in our country is weak and can not effectively regulate the gap between the rich and the poor.At the same time,it can be concluded that the current personal income tax system in our country is deficient in both horizontal and vertical equity through the analysis of income distribution and composition of the three major categories of personal income tax in our country and the analysis of the average tax revenue share of each income class.In addition,through the decomposition analysis of MT index,we find that the progressiveness of personal income tax in our country is not low,but the overall average tax rate is low,making it difficult for personal income tax to play its role of adjusting the income gap.Through the above empirical analysis,this paper digs out the reasons for the weak regulation effect of individual tax on residents' income disparity in our country from four aspects: the way of calculating personal income tax,the taxable unit,the deduction standard of taxation and the structure of tax rate,and makes an in-depth analysis.It is found that the current tax collection method in our country lacks fairness and can not truly reflect the actual taxpaying ability of taxpayers.Targeting individuals can not reflect the difference between income and expenditure among different households,as well as the cost deduction standard and tax rate The irrational structure has affected the adjustment effect of personal income tax on the income gap in our country.Finally,according to the above analysis,this paper gives the reform proposals of the next stage of personal income tax in our country,that is,using family as taxing unit,implementing the personal income tax system combining classification and comprehensiveness,making the tax system more tax-fair.At the same time,it is reasonable to design a fee deduction standard and tax rate structure that is suitable for the new collection mode so as to enhance our ability to adjust the income gap of the personal income tax.