An Analysis Of The Income Distribution Adjustment Effect Of Personal Income Tax

Personal income tax,as an important tax adjustment of income distribution in our country,has been of great significance in reducing the income gap and realizing social justice since the promulgation and implementation of the income tax in 1 980 for more than thirty years.However,with the continuous development of economy and society,the personal income tax has gradually emerged,such as the lack of income distribution adjustment,the unreasonable tax system,the lack of tax fairness and so on.Therefore,the“CPC Central Committee on deepening reform of the overall number of major issues”proposed to standardize income distribution order,reduce the income gap between urban and rural areas,and gradually establish a comprehensive and classification combination of personal income tax system.In addition,the decision also explicitly proposed to improve the proportion of labor remuneration in the initial distribution,as well as to improve the tax,the social security,the transfer payments as the main means of redistribution adjustment mechanism.To achieve the above objectives,we must scientifically analyze and evaluate the adjustment effect of our current personal income tax on income distribution.In this paper,the“personal income tax adjustment of income distribution”as the main line of research,discussing the income distribution adjustment effect of personal income tax from the theoretical and empirical aspects.Based on the theory of income distribution in the development of western economics,this paper analyzes the current situation of the income gap of our country on the basis of a large number of statistical data analysis.At the same time,taking Liaoning Province as an example,this paper analyzes the performance of the residents' income gap in specific provinces.Finally,the corresponding policy recommendations are put forward to improve the personal income tax in china.This paper consists of six parts.The first part is the introduction,based on the current state of the social background of the income distribution reform,this paper describes the background,significance and research status at home and abroad.The second part is the definition of relevant concepts and theoretical basis.It mainly defines the personal income tax,income distribution,income gap and other related concepts.Using the development of western economics in the theory of income distribution,the optimal income tax theory and tax equity theory as the theoretical basis of this article.The third part analyzes the current situation of income distribution gap in china.This part makes a deep analysis of the income distribution gap between urban residents,urban and rural residents,and different regions.In addition,taking Liaoning Province as a case,analyzes the performance of China's income distribution gap in specific provinces,and makes a comparative analysis of the income gap between the whole country and Liaoning province.The fourth part is the empirical analysis of the income distribution effect of personal income tax in Liaoning province.Before the analysis,first conduct the total personal income tax analysis,MT index analysis,index analysis,the average tax rate analysis,multi angle understanding of personal income tax to adjust income gap.Based on the time series data of Liaoning province from 2002 to 2015,this part uses cointegration test and error correction model to study the income distribution effects of personal income tax.The fifth part focuses on the analysis of the shortcomings of personal income tax in China.The specific performance are the shortcomings of current classification of taxation model used in China,the insufficience of cost deduction standard,the unreasonable tax rate progressive structure,the low efficiency of personal income tax collection and management.The sixth part puts forward some suggestions on the improvement and reform of the personal income tax in china.In order to solve the existing problems in our country,this part puts forward the solutions to the personal income tax.Include : using a collection method of combination of classification and integration,developing a reasonable personal income tax expense deduction standards,optimizing the structure of personal income tax rates and strengthening the personal income tax collection and administration,etc.