China’s Tax Incidence Study

Extent of the impact of tax incidence tax effect of adjusting income distribution,tax incidence is an important aspect of in-depth study of income redistribution can notbe ignored. Tax incidence study of China not only help to understand the China issuea final distribution of the tax burden in different populations, but helps to control theflow direction of the Chinese tax incidence, and helps to reflect the tax effect of theregulation and its policies. This paper aims both macro and micro aspects of Chinesetax incidence studies, theoretical analysis and empirical analysis drawing on theresults of previous studies based on the basic theory of tax incidence for furtherresearch, the path and method, the main research content and research conclusions:The study of tax incidence refers to the actual tax incidence, mainly due to priceelasticity of demand and price elasticity of supply, the impact of the tax structure, thetax base and rate structure, methods of assessment and other factors. Interpretation ofthe tax incidence and the system of local equilibrium theory and general equilibriumtheory, empirical analysis provides a theoretical basis.Through a balanced analysis of the Ministry of Urban seven categories ofconsumer tax incidence empirical analysis drawn: a cross-sectional view from theassumption that the supply remains constant, and assuming assessment of sevencategories of goods carried under the same conditions, for other commodities "healthcare commodities " and " food products " from the consumer side bear a largershare of the tax burden, then according to the proportion of the consumer taxincidence followed " live commodity "," clothing goods"," daily use goods "and"education and entertainment commodity,"and " transportation and communicationcommodities " may be able to be passed on to consumers and the share of the largestproducers and thus relatively more inclined to bear; from time-series data," foodproducts "," daily use goods "," clothing goods "and" transportation andcommunication class " tax incidence tend minimum income level of social groups,"leisure entertainment commodity " tax incidence tend to middle-income social groups," live commodity." and " health care commodities " and the highest income groupstend to tax incidence. By general equilibrium analysis conducted on the fate ofcorporate income research and analysis drawn: China enterprise income tax for capitalgains, capital factor does not fully bear the tax burden. Under reasonable parameters,the capital element bear only about77%of total tax revenue, the tax passed on to therest of the labor factor of about23%of the commitment.Based on the31provinces, municipalities, autonomous regions and municipalities directly under the macro tax burden measure, roughly the conclusionthat the tax burden is higher than the eastern part of the western region, the centralregion the lowest tax burden. Regional tax burden measure, understanding the overalltax incidence learn to play the role. The second and third industry tax rate measure,the industry can understand the situation in the rate of the tax burden in variousindustries.In this paper, the research and policy recommendations based on empiricaltheory that are:(1) The tax system to help set tax incidence on high income earners.(2) Government to formulate tax bases in different choices need to raise taxes toconsider the integration of the different elements.(3) The establishment of the taxsystem needs to fully consider the tax flows between regions and industries.(4) Thetax system is set to consider tax incidence would bring the tax regressive factors.