Research On The Influence Of Individual Income Tax On The Human Capital Accumulation

National development depends on talents and national revitalization depends on talents.Human capital occupies an important position in promoting China’s economic development.The accumulation level of human capital mainly depends on individuals,governments and enterprises to invest in human capital,in which individuals are the main investors,so our country continues to carry out personal income tax reform to reduce the tax burden of individual income tax and increase the disposable income of residents,in order to encourage individuals and families to invest in human capital to improve the level of human capital of the country.Therefore,from the perspective of micro-subject,this paper studies the impact of the reduction of the actual tax burden rate of personal income tax on the level of human capital accumulation,and under the circumstances,the author come up with the proposal to improve China’s personal income tax policy to improve the level of human capital in China.First of all,this paper introduces in detail the definition and measurement of personal income tax and the collection of personal income tax in China.This paper comprehensively explains the theoretical basis of reducing the actual average tax burden rate of human income tax to promote human capital accumulation from the aspects of human capital accumulation theory,consumption theory and market failure theory.Clarify the mechanism of individual income tax on human capital accumulation from the point of view of affecting personal investment.Secondly,starting from the current situation of the level of human capital accumulation,sort out the current tax policy of personal income tax in China.On this basis,analyze the shortcomings of individual income tax affecting human capital accumulation.Then this paper structures a fixed effect model to empirically study the impact of individual income tax on human capital accumulation which is selected the balanced panel information of 31 provinces from2007 to 2020 as samples,and further carry on the heterogeneity analysis to the areas with different economic development and different government support,and finally carry on the robustness test.The research shows that the reduction of the actual average tax burden rate of individual income tax can significantly improve the level of human capital accumulation in China,and it is found in the heterogeneity analysis,the reduction of the actual average tax burden rate of individual income tax has a significant promoting effect on the underdeveloped areas and areas with relatively low government support,but the effect on the eastern economically developed areas and areas with high government support is not significant.According to the probabilistic analysis,status analysis and positive analysis,this paper come up with the relevant policy suggestions of individual income tax from the aspect of promoting human capital accumulation,in order to establish a more perfect personal income tax policy and improve the level of national human capital accumulation.