Analysis Of The Regulating Effect Of Personal Income Tax On Income Distribution Equity

As one of the main sources of China's fiscal revenue,personal income tax can not only be used to raise funds,but also an important way to regulate the fairness of income distribution in China.However,since the Individual Income Tax Law was enacted in 1980,the problem of income distribution gap in China has not been well resolved,On the one hand,according to the Gini coefficient officially released by the National Bureau of Statistics,the highest value in China has reached 0.491,and the lowest value has been hovering at 0.46,which is still high.On the other hand,personal income tax has gradually become problematic in terms of tax equity,tax system setting and adjustment of income distribution.This has led to a series of questions: whether personal income tax has played a role in fair distribution,mainly regulating which groups of people have an impact on the income gap between urban and rural residents,Based on the above problems,this paper studies the adjustment effect of personal income tax on income distribution equity,and hopes that the research results can provide some help to relevant departments and scholars.This article begins with the introduction of personal income tax policy and income distribution theory,the status quo,etc.,and gradually studies the adjustment of personal income tax to fair distribution.Firstly,the resident survey data from 2012 to 2016 are retrieved from the three databases of CLDS,CGSS and CHIP.The “post-event” method is used.In the context of “non-parametric” method,the propensity score matching based on the logit model of random parameters is used.The Law and the Tell Index make an overall analysis of the urban-rural income gap.Then,with the excess progressive tax rate as the standard,all individuals are divided into income groups to study the opportunities of different income levels in urban and rural areas and the degree of change in effort inequality,and compare with the 2010 CGSS resident data to analyze the change in tax rate.The impact of fair income distribution.Finally,according to the results obtained,the government and the society are given corresponding suggestions,so that the tax policy can fully play its role in regulating the fairness of income distribution.By analyzing the degree of change in income inequality after tax before tax,the results are obtained: personal income tax has a positive adjustment effect on the fairness of urban and rural income distribution,but the effect of individual tax on the unequal opportunity arising from the environment is weaker than the effort;Tax has the best effect on the adjustment of middle-income and upper-income groups in urban areas,and the worst adjustment effect on low-income groups in urban areas and middle-lower income groups in rural areas;As far as towns and cities are concerned,the adjustment of the four-level tax rate after the revision of the individual tax rate in 2011 is the best,and the effect of the first-class tax rate is the worst.As far as the rural areas are concerned,compared with 2010,the revision of the Tier 1 and Tier 4 tax rates is generally effective,and the revision of the Tier 3 and Tier 4 tax rates is not effective.According to the research results,it is suggested that the government should strengthen the education team,balance the regional advantages,create a fair growth environment;increase the collection and management of high-income households in urban areas;pay attention to vulnerable groups,create more fair and favorable environmental conditions;and improve the tax rate system.