Research On Function Of The Taxation In Regulating The Income Distribution Gap

Along with the market economic reform from the distribution system, China began to establish theincome distribution system of distribution in which a variety of factors of production are involved.Thisincome distribution system breaks the average distribution system, which greatly mobilized people’senthusiasm and initiative, social wealth is increasing rapidly. But along with the great development of theeconomy, the great wealth of social and material,based on individual resource endowment differences,the personal initiative and capacity,social status and the opportunity also had a huge differentiation.Thedirect result of the huge differentiation is the widening income gap and the pattern of polarization.Moderate income gap can mobilize the enthusiasm of the workers, but too much of the incomedistribution gap, in particular, income polarization will inevitably lead to overly concentrated socialwealth,different sectors of the social inequality of opportunity.and the stagnation of social mobility. Thehuge income gap is an important cause of insufficient domestic demand.It will not only affect thelong-term economic stability and sustainable growth, or even lead to social conflict.The market failure reflecting on the income distribution system is the income gap. The marketmechanism is difficult to solve the problem of the gap in income distribution, to which efficieny is theprimary consideration. As a government-allocated secondary distribution should be mainly in the fair. Sothe government should play an important role in the adjustment of the income gap.The primary means ofgovernment regulation is tax.The set of tax,the adjugement of the tax rate and the choice of the tax basecan help the government to control the income gap.At the first part of this article,we analyse the background and significance.we think that the topics have important theoretical and practical significance,we put forward ideas and framework of this studythrough the analysis of existing research At the second part,we analyse the status,performance, effectsand causes of the income distribution gap from the tax revenue perspective.At the third part,we focuseon analysis of the status and problems of China’s tax income distribution on the basis of the status quo ofChina’s income distribution.we find that the existing tax structure is irrational, personal income tax doesnot play its due role,property taxes are in a missing status,consumption tax adjustment isinadequate,collection and management of technical level is low.And analyse the limitations of thedistribution of income tax adjustment. At the fourth part,we put forward comments and suggestions toimprove the taxation of income distribution adjustment on the basis of the preliminary analysis.Wesuggest that the personal income tax system should be perfect to play the main role in regulating incomedistribution gap;improve the property tax system to adjust the gap in income distribution effectivly;expand the scope of the collection of consumption tax; adjust the tax structure to promote the fairdistribution of income; strengthen tax collection, and improve related measures to adjust to better playthe taxation of the income distribution adjustment function.We explore the status of our current income gap from tax perspective.The paper is based on taxadjustment of income distribution theory,Research and analyse the current status and problems inregulating income distribution of our tax system.Finally we put forward suggestions for the problems.Wecomprehensively study the existing research of many scholars, and use the latest information and datato study this problem.