An Analysis Of The Effect Of Individual Income Tax On The Income Distribution Gap Of Urban Residents

According to the Gink coefficient published by the National Bureau of statistics,Chinese Gink coefficient is over 0.46 in recent years,which has been higher than the international income gap warning line.This shows that with the rapid growth of the economy,the gap between the rich and the poor in the distribution of income among the residents is becoming more and more prominent.At present,personal property tax,real estate tax and inheritance tax have no relevant regulations and policies and social security system is not perfect,so personal income tax has great expectations in regulating the income distribution gap of residents.As the government to regulate the income gap between the powerful lever,fiscal and taxation scholars has been focused on the study about China's personal income tax levy since there is to narrow the income distribution effect,effect of how much,and faced with the situation of the income gap is becoming more and more serious,the personal income tax system should be how to make adjustments.This paper is trying to solve the problem.The article focuses on the analysis of the effect of personal income tax to adjust the income gap of urban residents of this central theme.First from the basic theory,the mechanism of the income distribution of personal income tax regulation and tax adjustment of income distribution gap,and the income gap between residents of relevant indicators measuring the tax section.Secondly,we analyze the current status of China's residents' income distribution,from the three dimensions of urban residents' different strata,different income sources and different regions,and then make empirical analysis on the adjustment of personal income tax to urban residents' income distribution by means of relevant income data.With the MT index and decomposition model,analyze the effect of the overall effect of horizontal equity regulation on the distribution of Chinese personal income tax and the overall effect and vertical equity effect,further analysis of the progressivity and average tax rate in vertical equity,based on the theoretical analysis and empirical research,explore the constraints of individual income tax play the factors regulating function,proposes to increase the personal income tax to adjust income distribution effects of policy recommendations.The main conclusions of this paper are as follows:1.From different classes of urban residents,the income gap between urban residents is increasing,especially between high and low income households gap is more serious,middle-income households income is in a stable level.2.From different sources of income in urban residents,wage income accounted for the largest proportion,which burden the property income.Gene coefficient is the largest,showing that China's property of uneven distribution of income gap,operating income growth Gene coefficient is the fastest,the income gap is widening.3.From the different areas of urban residents,the regional economic development is not balanced.The income growth rate of the eastern region is significantly higher than that of the middle,the West and the northeast,and the income gap between the eastern and other regions is increasing year by year.4.From the measurement results,individual income tax on the redistribution of income of urban residents has played a positive role,and with the improvement of the tax system,the positive regulatory role gradually strengthen,but the overall effect is still very weak.5.From the perspective of index decomposition model,the horizontal fairness effect of individual income tax is small,and the vertical equity effect is large.However,because of the high degree of individual tax and the low average tax rate,the adjustment effect of individual tax is limited.6.From the empirical analysis,to reduce the high income group after tax income ratio increased in the low income group,after tax income is more obvious to narrow the gap of income distribution,increase the average rate of the high income group generated by regulation is higher than the lower income tax rate average effect.And the elastic coefficient after tax per capita income and the average tax rate of different income levels of the absolute value is small,the effect of the personal income tax to adjust income distribution gap is still relatively weak.