An Empirical Study On Consumption Effect Of Income Distribution Effect Of Chinese Tax Structure

With the growth of economy,the income gap between the residents is becoming expanding,the unfair distribution of income has become the focus of public concern.In the 13 th five-year plan,our country has clearly put forward the point of optimizing income distribution and narrowing the social income gap.According to the official statistics of the National Bureau of Statistics,Chinese Gini coefficient was at 0.465 in 2016.Although the Gini coefficient has presented the trend of declining,it is still above the international warning line of 0.4.We can see that the gap between the rich and the poor is still large.Taxation plays an important role in narrowing the gap between the rich and the poor.It is expected to adjust income distribution by making full use of tax means.The Third Plenary Session of the 18 th Central Committee of the CPC proposed to reform the tax system,optimize the tax structure and gradually increase the proportion of direct taxes.How to increase the proportion of direct taxes to make it play more important role in adjusting income gap is both hot and difficult.Theoretically speaking,taxation has the function of adjusting income distribution,and the tax structure will affect the income distribution.However,whether the tax structure can play a role in adjusting income distribution in reality needs further examination.Based on the theoretical analysis,this paper uses empirical data from China to empirically test the impact of the tax structure on income distribution.Based on the empirical analysis,combining with the present condition of China's tax structure,sorting out the problems in the tax structure and proposing the suggestion of optimizing the tax structure to play a better role in adjusting income distribution.Firstly,defining the tax structure and income distribution,analyzing carefully the mechanism of the tax structure on income distribution in theory is followed.Secondly,analyzing the present condition of China's tax structure and income distribution,which builds the foundation for finding out the problems of China's tax structure.Thirdly,by establishing the econometric model and using China's empirical data,empirically testing the income distribution effect of the tax structure.The empirical results show that the current tax structure plays a weak role in adjusting the income gap.Finally,according to the problems existing in the tax structure,policy recommendations are proposed from both indirect tax and direct tax in order to make the tax structure play a better role in adjusting income distribution.