Research On The Regulation Effect Of Personal Income Tax On The Property Income Of Residents In China

The problem of distribution is a theoretical issue that economists have been concerned about for all the time,and it is also a practical problem which most governments would pay attention to.China,as a developing country,experiencing more than 30 years of reforming and opening up,has achieved remarkable success in economic.Its comprehensive national strength and people's living standards have been greatly improved.Comparing with the beginning of the reforming and opening up,the source of people's income is more extensive,and there are various of investment tools.What's more,People's income has increased considerably during the past decades of years.2015,China's urban residents disposable income reached 31195 yuan,which was 90 times as much as 30 years ago.At the same time,the income gap is getting bigger as well as the concentration of social wealth,which has become a major problem that affect social stability and sustainable development in China.According to the National Bureau of statistics,China's Gini coefficient has been above 0.4 since 2000.In 2008,the figures reached the highest point,0.491.The fair of income distribution has become one of the most concerned problems in china today.The property income,as an important part of people's income can also be able to measure the prosperity of a country.Although the property income accounted for the proportion of disposable income is still in a low level in china,we can see a great potential in it.The distribution of property and property income will affect the residents income directly.Since the 90 s of last century,the property income has been growing rapidly in china,and the growth rate has exceeded the wage income,the transfer income and other income.It accounts for nearly 9% of per capita disposable income in 2014.Generally,in the same economy,the Gini coefficient of property is higher than that of the gross income,especially in the financial property and real estate area.The National Bureau of statistics released "China city residential property survey report" in 2002,it reveal that 10% lowest income family's property accounted for only 1.4% of all residents' property.However,the 10% highest income family's property has accounted for 45% of the total property.The Gini coefficient of family property in urban was 0.51 in 2002,which is much higher than Gini coefficient of disposable income,the latter is 0.32 in 2002.As a result,the Gini coefficient of the property income is also higher than the Gini coefficient of income,and worse the problem of the income gap of residents.Tax policy as a effective tool which the government use to regulate the income distribution has its profound theoretical origin and policy basis.People hope it can narrow the big income gap,especially looking forward to the personal income tax play a critical role in the regulation between rich and poor.Therefore,it is important and realizable for us to analyze the effect of tax in regulate the property income.It also help us be clear about the Chinese residents' property income and property income gap,and understanding the regulation of the personal income tax on property income in order to research the effective policies to reduce the property income gap.This paper is divided into five parts to research the regulation effect of individual income tax on property income:The first part is the introduction,mainly introduces the research background,research significance,domestic and foreign research achievements of property income.Besides,it also introduces the research methods,the main innovations and inadequacy of this paper.In the second part,the paper first defines the definition of the property income,and analyzes the reasons of the widening property income gap of residents in our country from the aspect of theory.Then the paper analyzes the adjustment role of income tax in property income Distribution System from the tax structure,tax deduction,tax pattern and so on.The third part of this paper uses the grouped property and property income data of the urban and rural residents in china to describe the distribution and the trend of urban and rural internal property and property income,finding there is a big gap between between urban and rural residents property income in China and the gap is gradually expanding.Through an analysis of the Gene coefficient and the Theil index,the research proved that the property income gap is out of control,and the distribution between urban and rural residents property income is serious imbalance.The fourth part is the core part of this paper.In this part,it firstly explains some assumptions and data sources used in this study,and briefly introduces the index of tax progressivity.It make an empirical analysis of the regulation effect of personal income tax on the property income from the Lorenz curve,MTCP index and Suits index.The study found that the regulation effect of the current individual income tax on residents property income is very weak,and the main reason is because the government implements the classification of individual income tax model and proportional tax rate on property income.On the basis of the above analysis and China's actual situation,the fifth part of this paper put forward the corresponding recommendations to narrow the property income gap between the rich and the poor,including transforming the existing tax revenue collection pattern,proposing a comprehensive income taxation system,and perfecting existing property tax,for example,expanding the scope of taxation,tax the ordinary housing and adopt progressive tax rate on residents property income.Besides,the government needs to strengthen the administration of tax collection.What's more,the estate and gift tax should be established and carried out as soon as possible.