A Study On The Individual Income Tax Collection With The Family As The Taxpayer In China

According to the statistics of the National Bureau of Statistics,the Gini coefficient of disposable income of Chinese residents is at a high level in the world and has been higher than the warning line for many years.The existing research shows that the insufficient effect of the government-led income redistribution policy is the main reason for the large gap between the rich and the poor in China.The introduction of policies such as "mixed tax system combining classification and synthesis" and "special additional deduction" in the seventh revision of personal income tax in 2018 further aroused the public’s ardent expectation for personal income tax to adjust income distribution inequality and achieve tax fairness.As one of the important constituent elements of individual income tax,the choice of tax paying unit directly affects the deduction of pre-tax expenses and the application of tax rate grade,and thus determines the effectiveness of individual income tax in tax fairness,income redistribution and other aspects.Family is a basic political and economic unit of society.Taking family factors into account in the personal income tax system is more in line with the value goal of personal income tax,which is to regulate income and focus on fairness;The family as the tax unit has more advantages than the individual tax in terms of fairness and the adaptability of the new special additional deduction.In order to study the specific impact of family tax collection on the current individual income tax and put forward suggestions for further reform,the main research contents of this paper are as follows:The research direction and framework of this paper are determined by combing the relevant research of domestic and foreign scholars on individual income tax payers.First of all,it defines the two key concepts of personal income tax: personal tax system and family tax system,and provides the theoretical basis for the following research with Rawls’ theory of fairness and justice,the theory of optimal tax system,and the theory of new migration economics,and analyzes the impact mechanism.Subsequently,through the analysis of the development process of individual income tax and the seven amendments,it is found that there are still shortcomings in the selection of individual income tax payers at present.The collection of individual income tax by taking family as the taxpayer can further increase the financial income,promote tax fairness,improve the redistribution effect of individual income tax,and promote the harmonious development of society,and has preliminary feasibility.In order to clarify the matching degree between the family as the tax unit and the current individual income tax rate and special additional deduction in China and the specific promotion degree of the redistribution effect of individual income tax,in the empirical link,through the screening and consolidation of the CHFS data of the Southwest University of Finance and Economics,the personal information is summarized to the family.First,the pretax and post-tax Gini coefficient,MT index,average tax rate,and redistribution effect indicators under the current tax system are calculated;Secondly,it simulates the post-tax Gini coefficient,MT index,average tax rate,and redistribution effect indicators under the mode of combined deduction of husband and wife’s comprehensive income.The comparative analysis of the two shows that after the adoption of the family tax system,the MT index increases by 0.0165 and the redistribution effect increases by 3.29%.Finally,on the basis of analyzing the evolution process and current situation of foreign individual income tax payers,drawing on the experience of foreign individual income tax payers and combining with the reality of our country,this paper puts forward the countermeasures and suggestions of collecting individual income tax with the family as the tax payer in our country.