A Study On The Income Redistribution Effect Of Individual Income Tax

With the continuous progress of society,the income level of China’s residents is also increasing,but the Gini coefficient of China’s residents has been higher than the international Gini coefficient alert line of 0.4 for many years,indicating that the income gap among China’s residents is still large.Personal income tax is a tax directly levied by the state on residents and plays an important role in regulating the income gap among residents.2018 personal income tax reform differs from previous reforms in many ways,focusing on raising the starting point of personal income tax and increasing the deductions for various items,taking into account the different conditions of resident families and making personal income tax more humane.The biggest progress of this reform is to change the previous classification levy to a combination of classification and comprehensive levy,which makes individual taxation more fair and tax burden more reasonable.This paper takes the "income redistribution effect of individual income tax" as the main line of research.Taking the income redistribution effect theory of western economics scholars as the research basis,the overall situation related to the income distribution of Chinese residents is analyzed according to the relevant data published by China’s National Bureau of Statistics.At the same time,China’s regions are divided into eastern,central and western regions for research,and the income disparity between residents of different regions in China is further analyzed.Relevant suggestions are put forward for further improving the construction of individual taxation.This paper is divided into five parts for related research.The first part is the introduction,which introduces the background and significance of this paper,the current situation of domestic and foreign research,research methods,innovation points and shortcomings.The second part is the theoretical foundation.It is mainly based on the income distribution theory,tax equity theory and optimal income tax theory in Western economics.The third part analyzes the current distribution of individual taxation in China,including the evolution of individual taxation system,the scale and changes of individual taxation,the current distribution of residents’ overall income,and the current distribution of different regions and different income groups.The fourth part is the empirical analysis,which firstly introduces the relevant measurement indicators and conducts the relevant measurement analysis,and further analyzes the relevant factors affecting the redistribution effect of personal income tax income in China by using econometric models.The fifth part is the research conclusions and policy recommendations,which draws some research conclusions based on the relevant analysis in the previous section and makes suggestions for the improvement and reform of China’s individual income tax.