Research On The Equity And Efficiency Of Individual Income Tax In China

Throughout ancient and modern, national development and reform the tax system seems to always accompanied by large or small, popular uprising,the changes of national tax systems disseminated blood of population for againsting oppression, and pursuiting fairness. Changes in the history of the tax system development is a people's indomitable, heroic history of struggle. Stamp duty sounded the prelude of the North American independence war, The Qing government increase in taxes every year so that farmers could not bear the burden eventually led to the outbreak of the Taiping movement, it can be said of tax equity requirements and reducing the tax burden on interest demands led to the so many people's uprising all times.In the present, economic growth is the primary task of national development objectives, the macroeconomic policy formulation and implementation are carried out around this goal. Therefore, the national governments are paying increasingly attention for the tax system whether affect economic efficiency, affect the quality of economic growth, Evaluation of the tax system an important indicator of success is its impact on economic efficiency.Consequently, tax fairness and the principle of efficiency is the first two factors to consider when various countries implemented the tax policy. Viewing the theoretical development vein of the principles of fairness and efficiency, their existence is short, and their development is flexuose. Along with the progress of the human cognitive competence, the theoretical principles of tax fairness and efficiency are also constantly deepened and improved. This paper examines the current personal income tax system in China from the angels of the taxation principles of equity and efficiency, and through mathematical model analysising of the personal income tax's related theory and empirical testing China's personal income tax level of fairness and efficiency using an econometric model. On the basis of in-depth analysising of the Western optimal tax theory, we point out the limitations of the theory and indicate explicitly our individual income tax reform direction and policy measures. Full-text is divided into seven chapters, the main contents are as follows:Chapterâ… :Introduction. Topics of this chapter sets out in detail the background, meaning and purpose, a clear theoretical framework of this study, presented at the last possible innovation of this study and shortcomings.Chapterâ…¡:Literature Review. This chapter mainly clarifies the theory of the personal income tax history of the development from the two point of views of fairness and efficiency principles. We also carefully reviewed the history of development of the optimal tax theory, from the trace the birth of the optimal commodity tax theory to the analysis of optimal personal income tax has the characteristics of the optimal tax theory, development of a comprehensive comb. Finally, scholars in China studies at the individual income tax was in order, put forward the theory of improving China's personal income tax the main direction.Chapterâ…¢:China's history of development of individual income tax system. Analysis of the first half of this chapter and described in the late Qing, Republican, planned economy era, as well as the implementation of China's reform and opening up the main features of personal income tax. The latter part of this chapter analyzes the status quo of China's personal income tax to run to verify the size of China's personal income tax revenues increase, the current rapid growth in personal income mainly from two aspects:economic growth and tax revenue plan presentation. The existing huge "collection room" is the successful completion of tax revenues are protected, but also to provid a strong material foundation for improving the level of personal income tax collection.Chapterâ…£:Individual Income Tax in China under the principle of equity Analysis. This chapter we make the theoretical analysis of tax fairness and personal income tax system's tax elements of design firstly. Secondly, we explore the fair degree of China's current personal income tax, through empirical testing about the current personal income tax we achieve that its ability for fair redistribution is lower than a number of fiscal policies and tools. Optimization of the structure of fiscal expenditure is more conducive to adjust the initial national income distribution, but also conducive to achieving social equity.Chapterâ…¤:Efficiency Analysis of Personal Income Tax in China under the principle. This chapter, we first prove the existence of the excessive burden form personal income tax, analysising of the personal income tax on labor supply, savings impact. Secondly, we have the efficiency of China's current personal income tax, conducted an empirical test. The results showed that, overall, China's output of personal income tax impact of the whole society is very weak, its impact on capital formation was not significant positive correlation with the labor supply, but the correlation coefficient is very small.Chapterâ…¥:trying to balance fairness and efficiency of the optimal income tax analysis. This chapter analyzes the optimal income tax basic model "Mirrlees model" step by step. Analysising of the model terms and conditions of the optimal tax system, in which the basis of analysis, we explore the optimal tax theory, the West Implications and the presence of limitations.Chapterâ…¦:Conclusions and policy recommendations-both equity and efficiency of China's personal income tax system reforms. This chapter is a full summary of all the conclusions, and based on previous empirical research, based on a clear optimal tax theory can not direct China's tax reform, we put forward the reform of China's personal income tax the basic ideas, and give out a more detailed policy advice.