The Study On Tax Policies Regulating Personal Income Distribution

The economic restructuring in China began with distribution reform. The breaking of egalitarian practice of everyone taking food from the same big pot made the cause of reform and opening-up vigorous and energetic. After 30 years of reform, the economic growth of China is eye-catching all over the world. At the same time, the increasing income gap becomes a hot spot of society, which make people doubt its rationality and equity. The issue of income distribution can be an economic issue or a social issue, requiring efficiency and justice. Tax policy, as a main method of regulating income distribution, has been an important tool in many countries to regulate income distribution. Therefore, how to exert the function of taxes to keep the income gap acceptable in society becomes a severe problem worthwhile to study. The paper likes to study how to bring taxes into play to suspend the expanding trend of income gap by analyzing the inhabitants' income gap.There are five parts mainly in the paper. The first part is the preface, in which theories and concepts of distribution and tax regulation at home and abroad are introduced and defined. The second part is an account of discussing the proof of tax regulation and regulating mechanism as well as the influence of various taxes on distribution. In part three, the actual condition of income distribution in China is expatiated from different angles. The forth part analyzes the status quo and limitations of tax regulation on income distribution. The last part gives the solution of perfecting the regulating function of tax policies. The innovation of the paper lies in the following facts. The author advances that, when analyzing the proof of calculating house property tax, personal house property should be evaluated and enrolled. On this basis, the excess part should be imposed and the part of free-charge should be determined by the provincial governments according to the local average house prices.