China To Levy Personal Income Tax Of Savings Deposit Interest Effect

From November 1. 1999. our country starts to levy inhabitant the savings deposit interest personal income tax by 20% tax rate. Because at that time the economy cannot obtain the effective development, the loan difference is greatly, the speed of economy is slowly and the expense market is not developed effectively. The goal of this policy was impels the economy to grow, reduces loan of people, lets the people withdrawal the money from bank and put into the expense or invest area, simultaneously also carries on the shift finance payment to the high income taxation, reduces the disparity of wealth of the city and countryside, realizes the social justice.As a macroeconomic policy which regulates the national economy of our country and adjusts national income structure, the goal of interest tax is not only promotes our country economy development, more importantly must maintain the national benefit, and promotes social justice. As the method of the value redistribution, public policy is the main way of public management as well as the maintenance of public benefit; its essence must be public. It should protect the majority person's biggest benefit, especially the majority person's long-term benefits, and prevent majority person's benefit invade the minority person's individual benefit. But comes from the interest tax policy implementation effect, it is not achieve the goal of the public policy maintenance public benefit, but causes the result that the impoverished person suffers injury, and not protected the benefit of social inferior community.This article from the public policy analysis angle, take to the interest tax policy effect analysis as the foundation, contrast our country social economy condition before and past of the levying of interest tax. Analyzed our country to levy the interest tax policy to ineffective mainly because the necessary policy was imperfect, the policy system was uncoordinated, Thus has caused instead effect of the policy, and induced the benefit to drain, and also put forward some suggestions, such as improve the level of people income, formulate reasonable tax rate, and key aspect of the interest tax policy effective implementation is consummation of the corresponding medical service, social insurance, education systems and so on.