Study On The Tax Loss And Causes Of Individual Income Tax In China

With the increasing complexity of the global situation and the rapid development of China’s economy,the gap between urban residents is gradually expanding,and the social problem of unfair per capita income distribution has become increasingly prominent.Individual income tax has become the main means to adjust residents’ income distribution,which is of vital significance to realizing social equity.In China,how to promote tax compliance and reduce the loss of personal income tax is an important problem to be solved.The reform of the new tax law can effectively improve the tax compliance of individual income tax,to reduce the tax evasion has a certain positive effect,but at present the individual income tax collection and management is inefficiency,the system lag also makes the tax system behind the change of residents’ income and consumption patterns,the tax collection and administration of individual income tax also put forward higher requirements and challenges.Firstly,this paper makes the theoretical analysis of the causes of the loss of individual income tax based on the tax payment link and the tax collection link,and preliminarily puts forward the corresponding conclusions according to the theoretical analysis.Secondly,the tax revenue capacity method and the revised cash ratio method are used to estimate the scale of the personal income tax loss in the open economy and the underground economy respectively,so as to more comprehensively understand the overall situation of the individual income tax loss scale in China.Once more,the CHFS2019 database questionnaire on personal income and related tax was screened and collated,with a total of9037 samples,Using the Logit Model for empirical analysis from the perspective of taxpayers: women have higher tax compliance;married people have higher tax compliance;the more risk-averse the taxpayer is,The higher the tax compliance degree will be;There is no obvious relationship between age and personal income tax compliance degree;The higher the educational level,The higher the probability of tax compliance;High-income earners,as compared to low-income earners,And a much lower proportion of their tax compliance,The higher the overall consumer spending,The higher the tax compliance of taxpayers will be.Subsequently,according to the panel data of tax revenue in 30 provinces from 2000 to 2020,the BCC-DEA method was used to measure the efficiency of individual income tax collection and administration.The efficiency value was used as the explanatory variable of the Tobit Model.The empirical analysis from the perspective of tax collection and administration showed that: the higher the importance of individual income tax in the macro economy,the higher the productiveness of taxation administration system;the foreign trade dependence is positively correlated with the efficiency of personal income tax administration;the higher the cultural level of tax personnel,the higher the efficiency of taxation administration system;the higher employability and economic development level,the more it can boost the productiveness of income tax for individuals collection and administration;the more widely used the Internet technology,the higher the efficiency of personal income tax collection and management;the process of urbanization has a positive effect on the productiveness of personal income tax revenue collection and management in China.Last but not list,according to the theoretical analysis and empirical analysis of the two levels of tax payment link and tax payment link,relevant policy suggestions are put forward from the three aspects of tax system,tax collection and management efficiency and taxpayer,which have certain reference value for improving the loss of individual income tax in China.