Research On The Tax Progression Impact On The Improve Proportion Of The Middle Class

Proportion of the middle-income class expand has many influence factors,this research mainly focus on a country or a region,in terms of the actual tax burden of progressive tax on the income groups,such as the influence of the proportion of expanding,the main research direction,extent,affects the time and the mutual influence between generations.This study of progressive tax and income distribution structure of the ethical basis for the ideological basis,based on the proportion of the middle-income class of multidimensional connotation definition,the mainly perspective of economics and sociology study measure of middle-income class,and using the classical method and KP index method,various statistical methods to progressive tax system in China respectively and measuring the proportion of the middle-income class,on this basis,using VAR econometric methods validation predicted the "progressive tax on the influence of the proportion of the middle-income class expand",then come put some corresponding public policy suggestions.The main research content:(1)The ethical foundation of progressive tax and income distribution;The theory and method of "Progressive tax" and "middle-income class".(2)Using KP index method for the China entire tax system in 1996-2015,including the progressive measure of the direct taxation and the indirect taxation;Using the standard of the world bank(considering the purchasing power parity),Lorenz curve and kernel density function method,measuring nearly 20 years the proportion of the middle-income class in China.(3)Using factor analysis to screen variables,analysis of the key factors influencing the middle-income people;Based on vector autoregressive(VAR)model,the empirical analysis and forecasting progressive influence of the tax on the proportion of the middle-income class.The main research conclusion of this article:(1)The medium income groups had many characteristics of information which is full of connotation;From economics,sociology,psychology,biology,aesthetics etc,scholars defining the connotation of the middle-income class in different perspectives.(2)Measure of medium income households have multidimensional characteristics,quantitative and qualitative standards,relative standards,the absolute standard,discrete method,observation method,continuous function,distribution function and experimental methods and so on.Measure of middle-income class reflects a nation or a society freedom,efficiency and fairness of welfare function.(3)A progressive tax system is the important parameter affecting the formation of the proportion of the middle-income class.Progressive tax system and the formation of the proportion of the middle-income class may be a positive relationship which can also be a negative relationship,this proposition needs specific empirical validation.(4)A progressive tax system whether to expand the proportion of the middle-income class reflect differences in different types of taxes.In this study,the empirical results show that the overall tax system and the proportion of the middle-income class form is associated with the degree of progressive,but the degree of progressive tax and the correlation of the proportion of the middle-income class show the differences.Degree of a progressive Individual income tax and VAT form were positively correlated with the proportion of the middle-income class,and Consumption tax is negatively related to the formation of the proportion of the middle-income class.Account for a progressive tax system would not necessarily be able to enlarge the proportion of the middle-income class,implied policy suggestion is tax adjustment direction which is not linear.The main policy recommendations:(1)Expanding the proportion of the middle-income class public policy should be committed to the approximation of the connotation of the middle-income class,more than the change of the income distribution policy.(2)The function of government is to safeguard the freedom of market competition,improve the efficiency of market competition,safeguard fair competition in the market.The economic growth of China and the quality reflected in higher proportion in the process of the economic transformation of the proportion of the middle-income class and dynamic expand,median rather than low levels of population.(3)The proportion of the middle-income class expansion path is generalized,the government public policy not only committed to the adjustment of the income distribution policy space,but also should focus on consumer policy.At the same time,focus on the wealth increase,housing,employment and social participation of well-being index.(4)The proportion of the middle-income class should expand the way mainly through the incomes of low-income people,continuously which make its approximation to middle-income people,public policy should focus on low-income groups which have the potential to be in the crowd has some of the characteristics of medium income group.(5)Basing on the proportion of the middle-income class expand target of tax reform which direct tax reform should be placed in the core content,which mainly include the personal income tax,property tax,consumption tax and the use of other tax tools.