Research On The Income Distribution Effect Of Individual Income Tax In China

Under the favorable economic growth,however,the living standards of urban and rural residents in China are incompatible.The continuous expansion of the residents' income gap shows the unequal distribution of social wealth,which will easily cause social instability and affect the sustained economy.Tax is an important tool and basic measure to regulate residents' income distribution.In our current tax system,personal income tax is considered as a systematic arrangement with strong income distribution effect.Since the founding of China,the reform and improvement have been carried out continuously,the aim of which is to improve the adjustment mechanism of redistribution.What functions have been adjusted to the personal income tax in these reform and adjustment.whether current personal income tax system can effectively reduce the gap between rich and poor,how to adjust the personal income tax system realizing the function of residents' income distribution,draw a widely public attention.Based on the current status of China's income distribution gap and the personal income tax's effect on the income gap adjustment,I did a lot of related literature learning,analyzed the research results at home and abroad,and closely studied the proposition of "the income distribution effect of personal income tax".In order to analyze the relevant factors affecting the adjustment of individual income tax in China and the existing problems of the current individual income tax in regulating the gap between the income distribution,This paper constructs the PVAR model,selects three residents' income gap in 24 provinces(cities)as the explained variables,selects three kinds of residents' income gap in 24 provinces(cities)of our country as the explanatory variables,selects the total income tax of individual income and its classified income as the explanatory variable,and tries to measure the proportion of individual income tax in the income gap of our country.From the national perspective,the total income of individual income tax and classified income in China do not play a role in containing the widening of income gap.From the perspective of personal income tax classification,the influence of the four categories of income on different regions is not consistent,indicating that our personal income tax system needs further reform and improvement.Finally,analyzed the personal income tax in regulating income distribution in Britain and the United States with MT,and the American tax system is introduced in detail,With the experience of its successful experience,we put forward some relevant policy suggestions to enhance the income distribution of the individual income tax in China.