Research On Tax Redistribution Effect From The Perspective Of Floating Population

With the continuous development of C hina’s economy,the income of residents has shown a polarizing trend.The report of the 19 th National Congress of the Communist Party of China emphasized that the income distribution gap should be narrowed from the perspective of primary distribution and government adjustment.Whether tax can play the function of income redistribution is an important factor to consider in optimizing tax system.The total number of floating population in C hina reached 236 million in 2019.F loating population shows low income and excessive basic consumption in in-flow area.The economic burden and redistribution effect of taxation on floating population is worthy of attention.Therefore,this article has studied the income redistribution effect of indirect tax and income tax in 2016 from the perspective of floating population.The research content includes two aspects: one is to use microscopic measurement method to calculate the actual tax burden of floating population;the other is to use average tax rate,marginal tax rate,the K index,the MT index,and the Theil index to measure the income redistribution effect of taxation.The article consists of five parts.The first part is exordium,which introduces the research background,meaning,train of thought,methods and innovative points of this article,and reviews domestic and foreign literatures.The second part is an introduction of floating population and tax redistribution mechanism.The third part is research method and data description,which introduces basic assumptions of this article and index principles first,and then describe the main points of data processing and the use of microscopic measurement method.The fourth part is the empirical results and analysis.This part analyzes income redistribution effect of tax on floating population from both qualitative and quantitative aspects,and uses the results under different tax burden transfer assumptions to test robustness.The last part is conclusion and policy suggestion.In this par t,conclusions drawn from the empirical analysis are summarized,and suggestions for tax system optimization are put forward.This article draws following conclusions.(1)Indirect tax is the main source of tax burden on floating population,and it has a s ignificant adverse regulatory effect on income distribution of floating population.(2)Individual income tax is progressive in the design of system and has a certain positive redistribution function.(3)Enterprise income tax has a small redistribution effect on floating population,and it shows a slight degree of progressive or regressive under different tax burden transfer assumptions.The degree of progressive depends on the tax burden assumed by labor factor,the larger the proportion,the more regressive.(4)Under the combined effect of indirect tax and income tax,the overall taxation is regressive to floating population.The main reason is that individual income tax accounts for a small proportion of total tax revenue and its progressivity cannot offset the regressive nature of indirect tax.(5)Compared with non-mobile population,the primary distribution within floating population is fairer and the tax redistribution effect has reduced the income distribution gap between the non-mobile and floating population.This article proposes three policy suggestions from the perspective of tax system optimization.(1)Adjust taxation structure,gradually transition to double main structure of direct tax and indirect tax,and finally change to a taxation structure with direct tax as the main body.(2)Reduce tax rate and adjust levy scope,to reduce the indirect tax burden on low-income people.(3)Optimize the individual income tax system from the perspective of rising deduct expenses and comprehensive levy by family.