Discussion Of The Role On Taxation In Narrowing Chinese Income Gap

Since the reform and open policy, Chinese economy has made remarkable achievements, theresidents' personal income has been greatly improved. Meanwhile, the gap between rich and poor inChina is expanding gradually, and the income distribution is unfair. This phenomenon has arousedwidespread concern and impacted the development of economy and society. The building ofharmonious society has been hindering. Because of the market economic system, our Country hasimplemented the policy which encouraged some people to get rich.The income gap between urbanand rural areas, all aspects of the industry and regions is not only a market failure, but also animportant area of income distribution of our government.The tax is an important tool to compensate the market imperfections and control the macroeconomy. It has been an important part of the economic policy system in our Country. Thereasonable tax policy can promote the stable economic development, improve the unfair incomedistribution and enable more and more people to share the fruits of reform and opening up in ourCountry. From the international experience, a large number of developed countries generally set upa personal income tax, social security tax, estate, gift tax, The core control system plays a huge rolein maintaining social equity and income.In this paper, the status quo of China's income distribution as the starting point. On the basis ofresearch on domestic and international literature review, a large amounts of data as a support for theUrban and Rural, regional, the status of the income gap between the industry analysis anddemonstration, summary the reason for the large gap in current distribution; By analyzing the threedistribution and the swap function of each tax, regulating income distribution problems; lastly,Learning from the advanced experience of the developed countries and proposing appropriatecountermeasures. Pointing out that Chinese tax revenue should take efforts to regulate the initialdistribution and re-allocation, meanwhile playing a leading role in the third distribution.