An Empirical Analysis On The Interest Income Tax Of China

Since the early 1950s the founding of the New China, the repealing of interest income tax abolish or reserve is a series of frustrations, and since its levying formally from November 1999, the effect to the economic behavior of the residents and even the whole macroeconomic situation can not described by "eight-year itch". How to carry on scientific analysis to the effect of the income tax of the interest, how to appraise it ,this is the subject problem that this text should solve.First, the main content and view of the thesisThis article except the foreword altogether divides into three chapters, approximately 36,000 characters.The thesis has explained selected title meaning and purpose of the thesis in the foreword part, domestic and international relevant research and commenting briefly, research range, logic structure, research approach and deficiency, aim at laying the foundation for the writing here in below.Chapter 1: Theory analysis of the income tax of the interest. This chapter has discussed the concept of relevant nouns such as the source of interest, interest and income tax of the interest, have compared argumentation about interest and interest source of western economist and Marx such as Irving Fisher, BÇ'hm-Bawerk, Keynes, and has chosen Marx's definition about interest as the main view here in finally.In this chapter the thesis has carried on longitudinal and horizontal comparison current income tax of the interest with income tax of the interest nowadays that the countries all over the world implemented and the xi Han Dynasty-era "rent out (on credit), tax credits" .Through this, the paper hold the opinion that the interest income tax is supposed to have the functions of financial income function and economic adjustment functions, and according this divide the effect of the income tax of the interest into two components: the effect of the fiscal revenues and economic adjustment effect. This has done foreshadowing well for following argumentation. The chapter also used the regulate analysis method for the analysis of the effect of interest income tax, in the process of using the life-cycle theory, relative income theory etc classical theory to analyze the effect of interest income tax, come to the ambiguous results: No matter the impact of savings or unemployment rate on interest income is determined by trial of strength between the income effect and substitution effect of the interest income tax. Chapter 2: An Empirical Investigation into effect on interest income. This chapter is the core component of this paper. In this section, particularly I used the statistics and analysis methods for studying the interest income tax effects of the economic adjustment. To the impact of interest income on savings and unemployment, I set up the model of interest income tax–savings and the interest income tax-the unemployment rate model, and examined the model at the same time.In the process of set up model, the paper better absorption predecessor's research results, especially , this article mainly has utilized the Phillips equation in the interest income tax-unemployment rate model establishment process , in consideration of a period of lag behind a period inflation rate, the natural rate of unemployment, interest income tax factors, and the interactive influence of the natural rate of unemployment , lagging inflation rate between the interest income tax ,the author built the economic model and reflect the objective economic phenomenonChapter 3: The interest income tax system choice in our country. In this chapter, this paper first systematic summarized the view which the domestic scholar puts forward to the income tax of the interest, proposed a discretionary choice solution basing on analysis of the previous model.This authors thought the interest income tax has own complexity, in the short-term looked the interest income tax has the good tax properties, but from looked for a long time the interest income tax has more remarkable negative. Therefore, the authors propose the reform of interest income "two-step" solutions, short-term the exist interest income tax system and reformed to maximize the interest income tax's advantages, and longer-term interest income tax should be abolished in the right time, and left the stage of tax system. Second, the main innovation in the paperIn this paper, the specific innovations are in the following areas:First: This paper gives a more scientific definition and classification of the effect on interest income tax. This paper refers to the effect that the tax on interest income due to the introduction of interest in a certain period of time to the state's revenue all aspects of the socio-economic situation brought about by the impact or effect. This article also further pointed out that, then interest income tax effect contains the organized financial revenue and the economy adjusts two aspects functions. And according to the above divides the interest income tax affect to the financial revenue effect and the economical adjustment effect. Through layers of exposition, this paper reveals the status of revenue effects and the economical adjustment effect, comparing the financial revenue effects, the economic adjustment are the core of interest income tax effect. So it is a key basis of investigating the effect of the income tax of the interest that it is fine whether the economic adjustment effect is. Second: Quantitative study of the effect of interest income tax and the corresponding model. From levy tax on interest, it has been one of the focuses which the academia has disputed all the time that it kept or abolished the tax, the experts and scholars specializing in interest income are ulterior more. But in the research literature on interest income tax ,the method are basing on determining research methods , or basing on experience to judgment, or a simple comparison to explain interest income tax issues. Comparing these literatures, the extensive use of this analysis method to the specific effect of the interest income tax is more objective, precise definition and analysis in this paper, which can fill the gaps in study on this area.Third: This paper proposes discretionary choice on interest income tax solutions. This article holds that the solution on interest income tax can not be simply abolished or adopted. Interest income tax system applied to the reform of the choice of solutions, determined by the complexity of interest income tax. On the current income tax has its own advantages, and it is worth being retained, and transformed. However, as the long run, it can not always be a good duty, so it is necessary to abolish in the future. Such a solution proposed in this paper has revealed the profound interest income in real terms, and also provided a path to resolve the reference value of interest income tax.