Research On Income Redistributive Effect Of Personal Income Tax In China

The new tax law implemented in 2019 is different from the past.It not only changes the amount of exemption,but also reduces the burden on taxpayers.It also increases special deductions and further reduces the pressure on families.The most important point is that this tax reform has historically achieved a combination of comprehensive and classified modes of levy,which has important positive significance for promoting fairness.This reform will have a profound impact on the income redistribution effect of China's individual tax.This paper analyzes the literatures of domestic and foreign research,draws on the research tools-MT index,Suits index,Thai index,combined with China's actual situation,analyzes the income redistribution effect of China's personal income tax,and then uses the fixed effect model to empirically analyze The income redistribution effect of individual income tax of sub-projects shows that the redistribution effect of personal income tax revenue in China has been improved year by year.From the perspective of personal income tax reform in 2018,this reform has slightly increased the overall income redistribution effect of individual taxes.Among them,the increase of exemption and the adjustment of tax rate have greatly reduced the effect of income redistribution of individual taxes.The comprehensive taxation system has significantly enhanced the income redistribution effect of individual taxes.From the perspective of MT index decomposition,the tax reform has caused the average tax rate to decrease and the progressive level to rise,the horizontal fairness to improve and the vertical fairness to weaken.The positive effect brought by the comprehensive taxation has partly compensated for the increase of the exemption amount and the adjustment of the tax rate.Negative effects;the results of the Tyre index have affirmed the income redistribution effect of the four comprehensive taxation;from the classification and collection model before the personal income tax reform in 2018,only wages,salary income tax,property lease Income tax and accidental income tax have positive effects on income redistribution.The main framework is as follows:The first part of the introduction,in a global perspective,and from the official level and in civil public opinion we konw the actual situation of the study of this article and the guiding significance of the theory.Fully absorb the theoretical guidance provided by scholars at home and abroad,and contribute to the research content and methods of this paper,form their own views and discover and correct them.The second part is the theoretical basis,which details the relevant theories in the history of income redistribution,analyzes the individual income tax system elements,and proposes the indicator system used in this paper.The third part is the development status.This part mainly sorts out the reform process of China's personal income tax and the trend of tax revenue changes,in order to find a correct positioning for subsequent research and indicate the direction of breakthrough.The fourth part of the empirical research,the data of this article comes from the "China Statistical Yearbook","China Tax Yearbook" and China Family Tracking Survey(CFPS2016),using the MT index,the Suits index and the Theil index for the overall income redistribution effect of personal income tax Quantitative analysis,and then use the fixed effect model to empirically analyze the income redistribution effect of China's personal income tax sub-project,in order to find a breakthrough point in the tax reform.The fifth part of the problem and policy recommendations,combined with the empirical analysis results of this paper,found that China's personal income tax problems,including the classification mode affects horizontal and vertical fairness,wage and salary income tax rate is too high,the highest marginal tax rate is high,the cost is not deducted Reasonable and serious tax loss,finally put forward corresponding countermeasures and suggestions for these problems.The possible marginal contributions of this paper are as follows: First,the taxation reform in 2018 is the first to introduce a comprehensive taxation system.The impact of comprehensive taxation on the redistribution of residents' income may not be actually presented.It is worthy of our forward-looking theoretical discussion.Second,this paper Using the MT index decomposition,the Suits index,and the Theil index to measure the redistribution effect of individual tax revenues,taking into account the impact of total income,and considering the breakdown of different income sources,different taxation factors,and different income hierarchy structures.The impact has given us a comprehensive three-dimensional understanding of this tax reform.There is still room for further improvement in this paper.There are two aspects: First,the accuracy of data selection is too low.The annual statistical data obtained by the statistical survey of the Bureau of Statistics only gives the macro statistics of the relevant indicators.Compared with the micro survey data,the accuracy is obviously insufficient.For example,the five-part income group is equivalent to five people.We can only analyze the income of these five people and the tax revenue they pay,and the accuracy is definitely not as good as having a large sample.Although the micro-database CFPS2016 cited in this paper has a large sample of data,its statistics are based on households,not on an individual basis,but the accuracy has been greatly improved relative to the statistics of the Bureau of Statistics.Second,different scholars have their own unique ideas.This paper focuses on the calculation of macro,meso and micro tax revenue redistribution effects,limit to limited research capacity,only with three indicator systems and one econometric model,the depth of research Still have to be improved.