A Study On The Regulative Effectiveness Of Income Distribution By Personal Income Tax

Income distribution has been called sustained attention and widely discussed in ourpolitical, academic area and society for a long time. From views changed from the“Eleventh Five-Year” Plan to the “Twelfth Five-Year” Plan, the ways to solve theproblem of income distribution continue to refine at the institutional level, they involvenot only a wage system reform and the elements’distribution improvement and so on,but also an emphasis on redistribution mechanisms mainly relied on taxation and otherregulatory mechanisms and a standardize pattern of income distribution.Among these,the personal income tax, as a direct effect on the income, will undoubtedly be able toplay a more prominent role in the regulation of income distribution gap. Therefore, thestudy of current income distribution effects on regulating personal income tax, andanalyzes of the limitations and shortcomings of current personal income tax regulationmechanism, has some theoretical and strong practical significance.By collecting a large number of references, this paper collates and analyzes theevolution of the tax regulation of income distribution theory, summarized andelaborated regulatory mechanisms and elements of personal income tax, and conductsempirical analysis based on the effect on the regulation of personal income tax.This paper isdividedintofive chapters.The firstchapter,describesthebackground,purpose and significance, combs and summarizes current domestic and foreignresearches, and gives a brief description of study methods, innovative points andshortcomings; The second chapter describes the theoretical basis, evolution ofregulatory theories of income distribution is summarized and the principle of personalincome tax regulation of income distribution is outlined; Chapter III demonstrates theempirical analysis of regulation effect on personal income tax, this chapter firstdescribes the status of the income distribution levels, and changes in estimates of theincome distributiongap, and thenmeasures the effect of personal income tax regulationand regulatory factors, then processes SVAR model on personal income tax regulationeffects, the last of the primary means of regulating income distribution is co-integrationanalysis, horizontal comparison of the relationship between various controls and thefinal income distribution pattern; The fourth chapter analyzes the limitations on currentpersonal income tax regulation of income distribution, this chapter analyzes the reasonfor poor regulation of the current personal income tax effect based on three aspects ofthe tax system design, execution and regulation of the tax system. The fifth chapter issuggestions to improve the regulation of income distribution. According to thelimitations of the personal income tax effect on regulation and analysis of existingregulatory mechanisms, the author provides ideas and suggestions to promote thepersonal income tax reform, improve the regulatory mechanism of the personal incometax. Empirical research shows that the current personal income tax system helps toreduce the income distribution gap, but the effect is very weak. From the perspectiveof the impact of its regulatory effects of the tax factors, the income scale of personalincome tax can produce a positive impact on its regulatory effect longer, the averagetax rate has a positive effect on the regulatory effect produced for a short time whilehas a reverse affect for the long term, and the positive effect that progressive has on itsregulatory effect is significant delay. Moreover, in the regulation aspects ofredistribution, weak regulatory personal income tax effect willbe offset by other means"reverse adjustment", and thus the final income distribution gap has a trend ofdeterioration.