Research On The Impact Of Macro Tax Burden On The Rural-urban Income Gap

With the opening of the new journey of building a socialist modern country in an all-round way in China,the realization of China’s comprehensive poverty alleviation and the gradual advancement of new agricultural modernization,reducing the income gap between urban and rural residents in China has become the key to fundamentally breaking the imbalance of development.This puts forward more urgent requirements for solving the income gap between residents,especially the income gap between urban and rural residents.Next,China’s efforts to promote common prosperity and build an efficient and fair society are inseparable from the study of the impact of macro tax burden on residents’ income gap.The theoretical analysis and empirical analysis constitute the analysis of this paper to explore the impact of macro tax burden on the income gap between urban and rural residents.The literature review and current situation analysis are clearly expressed.And this paper analyzes the mechanism of the impact of macro tax burden on the income gap between urban and rural residents.Using the panel data of 30 provincial administrative regions(except Hong Kong,Macao,Taiwan and Tibet)from 2001 to 2020,the econometric model is used for empirical analysis.First,abandon the use of the Theil index as an indicator to measure the income gap between urban and rural residents.After that,the value of the per capita income is used as a measure.Then use this numerical analysis to analyze the impact of the total macro tax burden on the income of urban and rural residents.The conclusion is basically the same:the total amount of macro tax burden in China plays a positive role in regulating the income gap between urban and rural residents,that is,with the decrease of the total amount of social macro tax burden,the gap between urban residents’ income and rural residents’ income will gradually narrow.At present,the absolute number of China’s actual macro tax burden is lower than the optimal tax burden level in China,that is,the macro tax burden at this stage is not particularly high.In contrast,although the absolute number of urban-rural income gap is decreasing year by year,there is still a large gap.It is significant in a certain range to reduce the income gap between urban and rural residents by decreasing the level of macro tax burden.Based on this,this paper then puts forward the following suggestions:First,strengthen the accuracy of tax burden adjustment;the second is to ensure the overall stability of the macro tax burden,break the dilemma of unbalanced growth of urban and rural income,and realize the multi-objective balance of government tax policy;third,promote economic transformation and break the urban-rural dual structure;fourth,improve the tax regulation system and enhance the efficiency of income distribution regulation;fifth,implement efficient rural comprehensive reform,increase urban-rural integration,and make breakthroughs and improvements in the system and economic structure.The innovation of this paper is that most of the current research focuses on the impact of individual taxes and tax structure on the income gap between urban and rural residents,or the impact on the income structure of residents.This paper combines the total amount of macro tax burden with the income gap between urban and rural residents,not only analyzes the income gap between urban and rural residents,but also discusses the types of income gap.In the fixed effect model,the Theil index,which combines the income of urban and rural residents and the population of urban and rural residents,is used to measure the income gap between urban and rural residents,making the results more measurable.This paper hopes to measure and analyze the specific situation of the income gap between urban and rural residents in China,understand the specific impact of the total macro tax burden on the income gap between residents,provide theoretical support for formulating more rigorous and effective policies,and provide some suggestions for solving the imbalance between urban and rural development in the future.