Study On Tax Adjustment On Property Of Individual Residents In China

Since reform and opening-up, with the rapid economic development, income distribution gap in China is widening. As an important component of the income, property income distribution situation has also aroused extensive attention in the whole society. Because property stock and property income is the relationship of source and revenue streams, this paper identifies property income with property flow, so the study of property of residents in China must be on the basis of the study of property stock and property income to analyze the distribution of property of urban and rural residents. In the context of the widening income gap, tax policies inspire high hopes. At this stage, making an in-depth study of the effect of tax on property of residents has a very important and practical significance for a clear understanding of property stock and property income distribution gap of residents and little effect of tax policies.Firstly, this paper estimates property stock and property income of urban and rural residents in China respectively based on the definition, then describes the distribution status of property stock and property income. Secondly, making analysis of the effect of property tax and personal income tax on property stock and property income combined with property tax and personal income tax policies. Finally, this paper makes suggestions to narrow property gap of residents in China.This paper mainly uses empirical and comparative research method in the process of analysis. In empirical research methods, by using Gini coefficient as well as tax progressivity index, the paper analyzes the distribution situation of property stock and property income and the moderating effect of tax on property income. In comparative research methods, the paper finds the characteristics of the distribution of property stock and property income through the comparative study of rural and urban areas.The main conclusions of this article are as follows.1. The inequality situation of property stock distribution of urban residents and is serious. In comparison with urban, the property stock distribution gap of rural residents is still relatively reasonable.2. The inequality situation of property income distribution of both urban and rural residents is serious.3. The effect of current property tax on narrowing the property stock gap is rather limited, mainly due to the small scale of property tax income and only a small part of the levy for individual residents.4. The effect of current personal income tax on narrowing the property income gap is not obvious, mainly due to the implementation of category levy system of personal income tax and the proportional tax rate provisions of personal income tax related to property income.5. To strengthen the effect of tax policy on property of residents, the paper makes some suggestions as follows. Merger of urban land use tax and real estate tax, introduction of heritage and gift tax, tax exemption on interest income of savings deposit of residents, implement of progressive tax rate form on dividend income and other investment income, establishment of personal income tax system based on a consolidated income.