The Empirical Analysis Of Income Distribution Effect Regulated By Consumption Tax In China

The huge income gap among Chinese residents has always been a problem that government need to consider.As a method of narrowing the income gap,taxation policies have been widely attracting the attention of all walks of life.According to the characteristics of consumption tax on specific taxation items,it can be learned that the consumption tax can also play a corresponding role in adjusting income distribution.In this research,MT and Suits indexes are used for empirical analysis to points of income distribution effect under the consumption tax,to understand the effect of consumption tax and its specific items on adjusting the income gap between residents.However,some policies of the consumption tax are flawed,which cannot be fully exerted the function of adjusting income distribution under current consumption tax policies.Therefore,based on the relevant conclusions obtained from data analysis,this paper proposes some countermeasures and suggestions for improving the income distribution effect under the Chinese consumption tax by combining the relevant characteristics.This paper is divided into five parts.In the first part,the background of this research and both practical significance and theory significance are elaborated while a briefly review about relevant literatures at home and abroad are also demonstrated,in order to understand the research environment on the income distribution effect under the consumption tax by domestic and foreign researchers.The content and methods of this research are proposed in the end.An introduction of theoretical basis about consumption tax and income distribution effect are showed in the second part,including the concept and characteristics of consumption tax in China,an analysis of principles and functions of consumption tax under current the income distribution,which lays the theoretical foundation for the following empirical analysis.The third part shows the evolution and current situation of consumption tax in China.A historical change of consumption tax,the current situation and its development trends will be shown in this paragraph.Meanwhile,problems existing in the income adjustment under the consumption tax are introduced.The empirical analysis about income distribution effect under the consumption tax are mainly demonstrated in the fourth part.Using MT and Suits indexes to analyze the effect of consumption tax and its specific items on income distribution empirically,factors that affect the income distribution effect under consumption tax are displayed in researching results.Suggestions for government policy on how to raise the income distribution effect through consumption tax are proposed in the fifth part.By analyzing the relevant factors obtained from previously income distribution effect and consumption tax research deeply,I propose several suggestions and policies of taxation way in solving problems existing in the income adjustment under the consumption tax to the greatest extent.