Research On The Income Redistribution Effect Of Personal Income Tax Reform In 2018

Personal income tax is a type of tax that is subject to taxation on the income and attribution of the property of natural persons.The background of this tax originated from the Anglo-French War in the 18 th century.At the beginning of its establishment,the purpose of the establishment of the British government was to raise wartime funds and guarantee military expenditure,and then gradually developed into an important taxation measure for the government to organize fiscal revenue and regulate income redistribution.Income redistribution is to make up for the shortcomings of the initial distribution.After the initial distribution,the state readjusts factor income as a social manager.A good income redistribution effect can narrow the gap between the rich and the poor,promote social equity and maintain social stability.Among the current 18 taxes in my country,the personal income tax is the most important tax tool for adjusting income redistribution.However,due to tax system design and other reasons,the personal income tax that has undergone several tax system reforms still fails to play a significant role in regulating income.In 2018,the highly demanded seventh personal income tax reform began.The new personal income tax reform not only continued the previous measures to increase expense deductions to reduce tax burdens,but also transitioned the original classified income tax system to a new tax system that combines classification and integration,Fundamentally reformed the personal income tax system.This reform is not only one of the main measures of the inclusive tax reduction and fee reduction policy,but also has an important impact on the income redistribution effect.Through the study of the income redistribution effect of the new personal income tax reform,it can not only evaluate the income redistribution effect of the new tax system The effect,enriching the theory of the new tax reform,can also provide a reference for improving the individual tax system and better exerting the effect of income redistribution.This thesis takes the 2018 new personal income tax reform as an opportunity,selects the income redistribution effect of the new personal income tax reform in the case city C as the research content,adopts literature research method,questionnaire survey method and Gini coefficient method.Query and read the information related to the new personal income tax reform policy and implementation,the basic theory of personal income tax income redistribution effect,research results,and collect the C city residents’ income sources,income and expenditure status,special additional deductions,etc,and the new personal income tax reform Implementation-related data,using the Gini coefficient,MT index and its decomposition indicators to analyze the overall income redistribution effect,horizontal fairness effect and vertical fairness effect of City C under four different tax systems: the original tax system,the virtual tax system,the transition tax system,and the new tax system Carry out calculations and compare and analyze the calculation results under different tax systems,and draw the following conclusions:First,the calculation of the overall MT index shows that the four tax systems all have a positive regulatory effect on income redistribution;comparing the old and new tax systems,the conclusion is that the new personal income tax weakens the income redistribution effect compared with the original tax system.The overall MT index decreased by 0.0038;from the perspective of the specific measures of the individual tax reform,the measures to increase the exemption and adjust the tax rate range have reduced the income redistribution effect of the individual tax,and the comprehensive income system implemented by the new tax system has a redistributive effect on income The effect is significantly enhanced.Second,judging from the horizontal fairness effect index in the MT index decomposition index,the comprehensive income tax system in the new personal income tax has greatly improved the horizontal fairness effect;and the calculation results of the vertical fairness index show that although the new personal income tax reform makes the personal tax system Progression has been improved,but the average tax rate has dropped significantly.The negative effect of the decline in the average tax rate is greater than the positive effect of the increase in progressiveness,which in turn leads to the reduction of vertical fairness and the weakening of the overall redistribution effect.According to further analysis based on the results of empirical analysis,the low proportion of individual tax revenue,unreasonable tax structure,low level of taxation and management,and lack of taxpayers’ tax compliance are important reasons for the weakening of the income redistribution effect.For the above reasons,This article proposes improvement suggestions from two aspects: further improving the design of personal income tax system and improving the ability of personal income tax collection and management in City C,such as increasing the proportion of personal income tax,optimizing the cost deduction and tax rate adjustment mechanism;strengthening the informatization and legalization of tax authorities Construction;increase taxation publicity,etc.,to better play the role of personal income tax in regulating income redistribution,narrowing income gaps,and promoting social equity.