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

As China's national economic growth continues to rise,the income distribution gap of domestic residents is increasingly widening,and different regions show different regional differences.Under such social background,the regulating effect of individual income tax on income distribution has aroused research from all walks of life.Individual income tax,as the main tax to adjust the income distribution gap of the country,has played an important role in regulating the gap between different provinces and regions in China and promoting the common development of the east and west.However,with the rapid development of China's economy,the defects of individual income tax have become increasingly prominent.The problems of tax system,unreasonable level of tax rate and the impossibility of fair principle all limit the regulating function of individual income tax in China.Therefore,in 2013,the decision of the CPC central committee on several major issues concerning comprehensively deepening reform put forward "improving tax system".We will deepen reform of the tax system,improve the local tax system,and gradually increase the proportion of direct taxation.Gradually establish the individual income tax system that combines synthesis and classification.on October 1,2018,China began to implement the seventh revision of the" new individual income tax law "in the latest expense deduction standard and individual income tax and tax rates table.The reform of the expense deduction standard and the individual income tax rate table in different areas on the adjustment of income distribution will be further aroused the hot discussion.Taking Beijing and Henan province as examples,this paper intends to use a large number of mathematical analysis to study and analyze the adjustment function and effect of individual income tax in different regions of China,and to point out the direction of China's individual income tax reform.This paper takes "individual income tax adjusting income distribution gap in different regions" as the main line of research,and explores the effect of individual income tax adjusting income distribution in two places from the perspective of theoretical research and empirical analysis.At the same time the use of western economics about income distribution in the history of the development of related theory,under the analysis of the current state of our country resident current situation,the gap of income distribution gap and on the basis of Beijing and Henan province data of a large number of statistical data analysis and research on the specific provinces of personal income tax differences of residents' income gap adjustment.Finally,it puts forward reasonable and feasible policy Suggestions for the reform and improvement of income tax in China.The article consists of the following five parts.The first part is the introduction.Under the background of the reform of individual income tax in order to adjust the income distribution gap in China,it expounds the background of topic selection,significance of topic selection,research status of domestic and foreign literature,research methods and research ideas of this paper,and points out the innovation points and deficiencies of this paper.The second part is the theoretical analysis of the income distribution effect of individual income tax,focusing on the function positioning of individual income tax and its mechanism of regulating the income distribution of residents.Meanwhile,it also introduces the income distribution theory,optimal income tax theory and fair taxation theory,which is the theoretical basis of this paper.The third part is an empirical analysis of the impact of individual income tax on income distribution gap based on the data of Beijing and Henan.On the one hand,a brief analysis of the current situation of the income distribution gap in China is made.In the analysis process,relevant indicators such as Gini coefficient,MT index,income redistribution coefficient R,average tax rate and K index were mainly used to explain the source of the data,and the current situation of the adjustment of income distribution gap of individual income tax in Beijing and henan province was analyzed in multiple aspects.The fourth part is an analysis of the reasons why the effect of individual income tax adjustment on income distribution is not ideal.It points out that the main problems of individual income tax in China are as follows:the collection mode of classified income is limited,the standard of expense deduction is"one-size-fits-all",the scale of individual income tax is low,the progressive structure of tax rate is unreasonable,and the efficiency of tax collection and management is low.The fifth part is the reform policy Suggestions for strengthening the adjustment effect of individual income tax income distribution in China.Based on the results of empirical analysis and the causes,some policy Suggestions are proposed,such as realizing the transition from the classified income tax system to the classified comprehensive income tax system,and appropriately improving the scale and efficiency of individual income tax collection in various provinces.