The Research On The Tax Adjustment Of Personal Income Distribution

For a long time, personal income distribution is one of the most concernedproblems by people. Based on the continuingly expanding of personal income gap andthe Party Central Committee’s high attention on personal income distribution, thispaper detailedly discussed the problem of tax regulation of personal incomedistribution, and provided some suggestions of optimizing the problem.Based on the theory of tax regulation of personal income distribution, this paperintroduced the connotation of personal income gap, and some famous income gapindex such as Including Lorenz curve, Gink coefficient, income distribution index,income equality index and the Kuznets ratio. And centered on primary distribution,redistribution and the third distribution of personal income, this paper elaborated theaction mechanism and regulatory mechanism of tax regulation of personal incomedistribution.Firstly, this paper analyzed the Status Quo of personal income gap, and thesituation is that the proportion of personal income in the national income continued todecrease and the income gap continued to expand all-roundly. From the sides of theincome gap between urban internal, the income gap between rural internal, the incomegap between urban and rural areas, the industry income gap, and the area income gap,this paper introduced the situation of the current personal income gap. Combininghistory and reality, this paper discussed the characteristics of market economy reformstage and its affection to income distribution.Secondly, with the present situation this paper analyzed the general cause of theexpanding of personal income gap, including the inclination of economic policy, theaffection of two structures in urban and rural areas, the imperfect of incomedistribution system, the nonstandard market system, the regional difference in resource,the personal difference in resource. At the same time, this paper considered tax policyfactors such as Tax structure defect, the imperfect of tax regulation system, theimperfect of specific tax system, the under-developed ability of tax collection andmanagement. Combined theory with practice, this paper respected for the law theory,and also focused on China’s national conditions. This paper accepted the objectivenecessity of the emerging and existent of personal income gap in our growing economymarket, and also analyzed the system defect of tax regulation of personal income.Thirdly, from a progressive perspective, this paper analyzed the effect of tax regulation of personal income with solid evidence. With taking personal income tax asan example, this paper used classical progressive method to measure the progressivityof the amount of tax payable of urban residents. The result showed that the amount oftax payable of low income residents possessed certain progressivity, but theprogressivity of the amount of tax payable of high income residents reduced obviously.At last, based on the tax policy factors of expanding of personal income gap asanalyzed before and the research conclusion of income redistribution by tax with solidevidence, this paper provided some suggestions as to tax regulation of income gap.First, the government can make the system of added-value tax and corporate incometax income taxes perfect to create fair tax revenue environment on the initialdistribution of income. Then, the government can set up the system of cross regulationtax to perfect the redistribution function of taxation system by perfecting the system ofpersonal income tax, property tax and goods tax, imposing social security tax,adjusting preferential tax and so on. And also, the government can strengthen taxadministration and management by strengthening tax control, refining informationmanagement, intensifying inspection and punishment and improving taxation creditsystem.