Chinese Personal Income Tax Reform Based On The Perspective Of Income Redistribution

The political philosopher John Rawls pointed out in his book "The Theory of Justice"that by"maximizing the minimum value",focusing on the interests of the lowest-income groups,and safeguarding social cooperation and fairness and justice,the overall efficiency of society can be maximized.The marketization of China's economy has become increasingly sophisticated and has experienced rapid development for many years.While citizens enjoy a significant increase in income levels,the gap between the rich and the poor is also becoming increasingly prominent.As a result,the issue of fairness is likely to have an adverse effect on the economic efficiency under the "New Normal".According to data released by the National Bureau of Statistics of the People's Republic of China,the average national income Gini coefficient for the period from 2003 to 2017 was 0.477,which was always above the international alert level of 0.4;the highest value was 0.491.China has become one of the most polarized countries in the world.With the gradual deepening of"Replacing business tax with VAT,"personal income tax has become the fourth largest tax category in the country.As an important tool for adjusting the gap between the rich and the poor in income redistribution,China's income tax should match its tax revenue status.The regulation effect.However,while the actual situation gives bad answers,many scholars have also pointed out that the regulatory effect of China's current classification income tax system on income redistribution is minimal,and even some policy adjustments in the year lead to "reverse adjustment".At the two sessions in 2018,personal income tax was listed as one of the priorities in the reform of the new round of fiscal and taxation systems.For the sake of theoretical perfection and the need for future tax reform,the article aims to increase the redistribution effect of individual tax revenue,evaluates the current system effect,proposes a design scheme for optimizing the tax system,and based on empirical verification of the program,based on relevant Conclusion,put forward the path choice for individual tax reform in China.The article begins with a theoretical discussion on the redistribution of personal income tax revenue.Explain the redistribution process through the classic microeconomic theory;study the extension of the tax redistribution process in the"third wealth distribution"through the generalized utility theory;and interpret our country based on Rawlsian "fair justice" concept The principle of tax reform is guided;Based on the theory of tax system design,the impact of tax system and taxpayer on redistribution is analyzed.The conclusion points out that the balance between "equity and efficiency" should be the guide for future reforms,ensure fair rules,and strive to achieve fair results.At the same time,the comprehensive income tax model should become the general direction of reform,and it should be combined with family-based units to pay taxes.Second,it evaluates the income redistribution effect of the current personal income tax system and conducts a total analysis.Starting from the overall redistributive effect of fiscal and taxation policies,the position of a tax will be stripped out;through the treatment of pre-tax after-tax income,the effect of this tax will be studied separately.The conclusion shows that the gap between the rich and the poor that I have passed is mainly caused by the initial distribution.The fiscal and taxation policies generally have a weak negative effect on residents' income adjustment.Although the individual tax plays a positive role in it,the absolute and relative indicators show that this effect Weak,less than some financial expenditures in the people's livelihood area;the policy of simply increasing the deduction of pre-tax expenses is not conducive to the enhancement of income redistribution.The poor results are mainly caused by the backwardness of the tax system.Third,the income redistribution of the current tax system is further analyzed from the three dimensions of different income levels,progressive horizontal and vertical equity,and redistribution regional performance differences.The conclusion shows that raising the effective tax rate is a key factor in improving the redistribution of individual tax revenues.However,at present,the actual tax rate of each income group is significantly different from the nominal tax rate,and the "Olive type" "actual tax rate change rate"adjustment method should be adopted.Low-income groups have the slowest rate of increase in actual tax rates,and have moderately accelerated middle-income incomes.Relatively slowdown in high-income groups.In the progressiveness of the tax system,the current tax system is generally inferior to Western developed countries,but it has shown horizontal unfairness.The second is that the current institutional effects are mainly maintained by vertical equity;in terms of regional differences,different Gini coefficient calculation methods based on household resident population,number of employed persons,and number of households are proposed,and a new method for evaluating local redistribution effects is constructed.The results show that there is a significant difference in the performance of redistribution of individual taxes in different places.This difference is mainly at the household level.The second is that a tax has the most significant adjustment of the employed people.And put forward the hypothesis:If the adjustment of key units from the employment of individuals to the family,can effectively alleviate the family-level differences.Furthermore,based on the micro survey data,the "basic livelihood subtraction+ special deduction”method was used to conduct system simulation analysis of the income redistribution effect of the family taxation system received from the labor-based income syndrome.The conclusion shows that this optimized tax system not only can reduce the gap between the rich and the poor in the local area,but also can reduce the differences between the eastern,central and western regions of China.The article proposes that under this model,taxpayers should be allowed to independently choose between family and individual declarations,set up at most three sets of tax rate tab4les,and pay attention to avoiding marriage and non-neutral supply of labor;at the same time,it is believed that raising the actual tax rate of taxpayers is very important.The most important thing is to establish an inquiry system for the income and property of natural persons that is similar to the US"Social Security Number."To optimize the reporting method,only special deductions can be made at the end of year-end reporting,and“tax rebates”can be used to drive the compliance of tax compliance.At the same time,in raising the effective tax rate,the growth rate of low-income groups is the slowest,and that of middle-income people is accelerating.The growth rate of high-income people is relatively slow,that is,the actual tax burden of "olives" changes,which leads to the formation of "olives" social income distribution..For this reason,it is recommended that the comprehensive tax rate table be adjusted accordingly.