Research On The Income Redistribution Effect Of China's Personal Income Tax System

Since the reform and opening up,with the rapid development of the national economy,the income level and income structure of Chinese residents have undergone tremendous changes.In recent years,the Gini coefficient of national income has remained above the international alert level and has gradually expanded.The personal income tax system is an important institutional measure to regulate the income of residents.Since the 19 th National Congress of the Communist Party of China,the central government has repeatedly defined the need to improve the redistribution adjustment mechanism including taxation and strengthen the adjustment of the taxation system.At present,the reform of China's personal income tax has become the focus of institutional reform.China's individual tax system is in a critical period of transformation into integration and classification.Understand the income redistribution effect intensity of the original system from the perspective of the regulation role of taxation,and the redistribution adjustment of income of each taxation system under the classification model,and the expected impact of the reform on the redistribution effect of the personal income tax system.It is an important reference for the reform of the tax system and the next step to optimize the effect of China's personal income tax system on the redistribution of residents' income.It is of great significance for improving the social secondary distribution system and maintaining social equity.This paper adopts a combination of normative analysis and empirical analysis to study the income redistribution effect of China's personal income tax system.In the aspect of normative analysis,the literature method is used to study the concept of personal income tax,the generation and development of the system,the theory of tax revenue distribution,and the theory of the redistribution effect of personal income tax on income.The principle of income redistribution effect of personal income tax system is introduced.At the level of analysis,the components of the personal income tax system and the specific institutional arrangements have a redistributive effect on the income of residents.It is found that the system of personal income tax in China has an impact on the income redistribution effect through the design of tax bases such as tax bases and tax rate structure.And using historical statistics to analyze the trend changes of various sub-items under China's personal income tax system,it is found that in China's personal income tax classification project,wages and salaries account for the most important proportion and have a tendency to expand year by year,the salary and salary items The tax system played a decisive role in the adjustment of China's personal income tax.In the empirical analysis,the resident income variable in the CHFS micro-database is used,the existing income data is used,the pre-tax and post-tax data are calculated according to the personal income tax method,and the redistribution effect generated by the individual income tax system is decomposed by the Gini coefficient decomposition method.In each of the sub-tax systems,and using the MT index,the alpha index,the sub-entry Gini coefficient,and the redistribution contribution rate,the individual income tax and the redistribution effect of each tax system are evaluated and compared with the OECD countries.In contrast,the conclusion that the redistribution effect of China's personal income tax system is weak before the reform is obtained,and the redistribution effect is decomposed by item.It is found that the main reason for the weak redistribution effect is the income tax system.The average tax rate is too low;in addition,it is found that the tax system for property transfer has a certain inverse adjustment effect.For the calculation of the redistribution effect of the new tax system,this paper uses the original classification income database to adopt the policy simulation method,and carries out the simulation calculation according to the new personal income tax system adopted in 2018,adopting the new tax rate,deduction standard and special additional deduction.Standards,and using the Gini coefficient decomposition method under the new personal income tax system,also through the MT index,redistribution ? index,Gini coefficient and other redistribution effect evaluation indicators,compared with the changes in the income redistribution effect of each tax system before and after the reform,The reform will weaken the income redistribution effect of the individual income tax system to a certain extent,which will further weaken the adjustment ability of the personal income tax system and expand the income gap of the residents.After decomposing the redistribution effect,it is found that the redistribution effect declines.The main reason is that this tax system reform will reduce the average tax rate generated by the individual income tax system of comprehensive income items and operating income.In view of the above research and analysis conclusions,this paper expands the applicable tax rate for high-income areas of comprehensive income,adopts progressive tax rate for capital classification,further expands the scope of syndrome collection,and adopts exponential deduction standard for improving the deduction system,and expands with the overall tax system model.The personal income tax base,the improvement of the tax collection level and the effective tax rate have six aspects,and put forward targeted suggestions for improving the income redistribution effect of China's personal income tax system.