Chinese Tax System Reform And Research Base On Equitable Income Distribution

Since reform and opening up more then30years, economic and social developmentof china has made remarkable achievement. With these developments, while there havebeen a series of problems to be solved, with in these, income gap in china graduallyexpending which is an indisputable fact. Domestic scholars focusing on this issue aregetting more and more, research point of view is still difference. The unfair of incomedistribution is the market failure, but it is also important areas of government interventionin the market.Looking at the pattern of residents’ income distribution, this gap mainly reflectedbetween the urban and the rural areas, between the regions, between the businesses.And, with the deepness reform of china’s economic, this trend will continue, thecontradiction of unfair income distribution will be more acute. Therefore, government isneeded to take relevant measures, solving the problem in the income distribution, make itdevelop in a reasonable and fair direction. Government has a variety of regulationapproach, tax is the most effective and most commonly used regulatory tools.However, the current tax system in regulating the effect of the income gap is not soideal. There are many areas needing improvement. This article based on the taxadjustment theory of income distribution, by analyzing the status quo of china’s currenttax system in regulating income distribution, making theory and empirical analysis inchina tax system to adjust income distribution, to identify the inadequacies of china’s taxsystem. Learn from the advanced of other foreign countries, and made suggestions forchina’s tax reform.