Study On The Estate Tax

As the development of our China's reform and open, the speed of economic development and the level of people's living have both greatly enhanced .But at the same time, the gap between the rich and the poor also is gradually becoming wider and wider. If the gap reaches to a high level, it inevitable affects the social stabilization, and in the end this economic problem will become a social problem. How to adopt an effective method to reduce the gap has theoretical and practical meaning. In order to resolve this question many countries adopt following methods: prompting the rich more consumption, more investment, encouraging contribution money, levying the estate tax and etc. By levying the estate tax, the country gets most of the rich's wealth when they are dead by tax. The writer realizes the purpose of narrowing the gap by levying the estate tax. In the first part, mainly including to the concept of the estate tax, basic theoretical school, the origin of theory and the analyses of effect. In the second part, the necessity of levying the estate tax in our China is analynized on three aspects. In the third part, borrow ideas on estate tax from many countries and district, for example, the USA, Germany, Japan and Taiwan district. In the fourth part, it presents several principals on our China's levying the estate tax and the main content of the estate tax system, including to the taxpayer, the object of taxation, the tax rating and so on. In the fifth part, it presents three questions that should to be taken into account. For example, excessive exaggerates or ignores the income effect of the estate tax, how to effective overcomes "the Wooden Cask Effect"and excessive exaggerates the finance effect of the estate tax.