Research On The Impact Of Transfer Payment And Tax Refund On Poverty

In 2021,China will win the battle against poverty as scheduled and build a moderately prosperous society in all respects as scheduled.However,China’s poverty alleviation work has not yet ended.In the face of the changes in the forms of poverty from relative to absolute,from one-dimensional income to multi-dimensional welfare,and the return of the people out of poverty to poverty again,we still need to continue to pay attention to and further study the problem of poverty.As an important means of income redistribution,the transfer payment and tax return system plays an important role in reducing poverty,promoting common prosperity and maintaining social harmony and stability.However,since the reform of the fiscal management system of the tax sharing system in 1994,China’s fiscal system has been in a situation of vertical imbalance.The division of financial and administrative powers between the central and local governments does not match.The grass-roots governments are facing greater financial pressure than ever before,and they are also overwhelmed when undertaking the work of poverty reduction.Therefore,it is very important to clarify whether the current transfer payment and tax return system has played its role in reducing poverty,and which form of redistribution has played a more obvious role in reducing poverty.Firstly,by reviewing the relevant literature on transfer payment,tax return and poverty,this paper combs and summarizes the existing literature and research results from two perspectives:the evolution and measurement of the concept of poverty,and the relationship between transfer payment,tax return and poverty.Then,according to the relevant theoretical basis of economics and China’s financial transfer payment system,this paper analyzes the impact mechanism of transfer payment and tax return on poverty reduction.Then,based on the five-year inter provincial panel data of China Household tracking survey(CFPS)in 2010,2012,2014,2016 and 2018,the poverty status of 25 provincial-level regions in China is measured,that is,by determining the relative poverty line,building a Multidimensional Poverty evaluation index system,and using FGT index and A-F method to calculate the relative poverty incidence and Multidimensional Poverty Index of 25 provinces,cities and autonomous regions in China,Based on this,the paper analyzes the typical facts of poverty in provincial areas.Finally,through empirical research on the poverty reduction effect of transfer payment and tax return,specifically,this paper first uses the panel data model to analyze all samples,and compares the impact of different forms of transfer payment on poverty,and then divides all samples into urban and rural sub samples,Eastern and central and Western sub samples to compare and analyze transfer payment The effect of tax return system on poverty reduction is different between urban and rural areas and regions.The results show that:(1)transfer payment and tax return reduce relative poverty and Multidimensional Poverty,and the poverty reduction effect of tax return is better than that of transfer payment;The poverty reduction effect of special transfer payment is better than that of general transfer payment.(2)Transfer payment and tax return have more reduced the poverty in the dimension of living conditions in Multidimensional Poverty,but have less effect on the reduction of education poverty and health poverty in multidimensional poverty.(3)Transfer payments and tax returns have no significant impact on the reduction of multi-dimensional poverty in rural areas.They have more promoted the reduction of multi-dimensional poverty in urban areas.(4)Transfer payment and tax return have no significant impact on the relative poverty in the eastern region,and they have more promoted the reduction of relative poverty in the central and western regions.Finally,this paper puts forward relevant policy recommendations:for example,the central government should further increase the proportion of tax return on the existing basis,increase the proportion of special transfer payments in transfer payments,and pay attention to both relative poverty and multi-dimensional poverty in anti-poverty.