Research On The Moderating Effect Of Individual Income Tax On The Redistribution Of Residents’ Income In Sichuan Province

China has undergone earth-shaking changes in society and economy since the reform and opening up,and people’s living standards have gradually improved,but it is worth noting that China’s Gini coefficient has remained high.The excessive gap between the rich and the poor has evolved into a major unfavorable factor affecting China’s stable and rapid economic and social development.In response,China has formulated a series of macro policies(such as tax policy,investment policy)and micro policies(such as social security,government subsidies,etc.)to adjust the gap between the rich and the poor,and made every effort to play the government’s regulatory role in the redistribution of residents’ income.Among them,taxation is regarded as an essential means for a country to regulate the redistribution of residents’ income,especially the individual income tax,which is the most critical means to regulate the redistribution of residents’ income.Accordingly,this work discusses and analyzes the moderating effect of the implementation of the individual income tax policy on the redistribution of residents’ income from the perspective of individual income tax.After expounding the reform process of China’s individual income tax and the basic status quo,this study judges whether China’s individual income tax has really or fully played its role in regulating the redistribution of residents’ income in the process of advancing by combining the income status of urban residents in Sichuan Province,income growth of diverse income groups,income composition of different income groups,and individual income tax contributed by different income sources in Sichuan Province in different years.The results suggest that the promotion and reform of individual income tax have indeed played a role in regulating the redistribution of residents’ income,that is,the reform of individual income tax has effectively reduced the tax burden of taxpayers and indirectly increased residents’ income.it has played a certain role in regulating the gap of residents’ income distribution.The comprehensive tax model reduces the tax avoidance space of taxpayers,that is,the tax burden of residents with a single source of income is equal to that of diversified residents,and improves the tax fairness.But on the whole,its moderating effect is far from obvious.The reason may be that the quality of China’s tax collection and management needs to be improved,and the proportion of individual income tax in the tax structure is still low.In fact,the return of relying on operation,capital and technology investment is much higher than that of wages and salaries,and the loss of tax sources is more serious,which undoubtedly seriously erodes the tax base of individual income tax in China.As a result,it is suggested to improve the quality of tax collection and management,strengthen the publicity of tax laws,improve the tax awareness and compliance of residents,and create a good tax environment that is honest and law-abiding and pays taxes in accordance with regulations;establish a special individual income tax management system to solve the problem of information asymmetry between the levy and payer,and to improve the tax authority’s grasp of residents’ income sources;establish a personal credit evaluation system,so that residents who can pay taxes in good faith in accordance with the law can enjoy the due credit honor;increase the punishment for tax evasion,and form a good tax management environment that dare not escape and resist fraud;and strengthen the tax supervision of high-income groups,compress and empty the tax avoidance space of this income group,etc.Finally,it must be clear that the individual income tax reform is not achieved overnight,but should be continuously adjusted and optimized with the development of China’s economy and society,and the optimization and maturity of China’s tax system structure,thereby enhancing its moderating effect on the redistribution of residents’ income.In view of the difficulty and complexity of obtaining research data and the limitations of the author’s knowledge,it is impossible for this work to analyze the problems in detail and thoroughly.Teachers are welcome to criticize and correct,so that this research can contribute to China’s individual income tax reform and adjustment measures for the redistribution of residents’ income.