Research On Difficulties And Countermeasures Of Levying Estate Tax In China From The Perspective Of Common Prosperity

Common prosperity is the essential requirement of socialism and an important feature of Chinese-style modernization.Promoting common prosperity is an important goal of China’s economic and social development in the coming period.With the widening gap between residents’ income and wealth,whether or not to introduce an estate tax in order to promote common prosperity is increasingly attracting attention.The intergenerational transfer of wealth triggers the concentration of wealth,which will exacerbate the degree of wealth inequality and further widen the gap between the rich and the poor.Estate tax can play an important role in regulating the distribution of wealth.From the perspective of equity,an estate tax can promote equality of opportunity and reduce wealth concentration.However,from another perspective,many negative factors affecting economic development will also be generated with the introduction of estate tax,especially in the case of downward economic growth,which may further aggravate the downward trend of the economy and affect market efficiency and wealth production and creation.We will face many difficulties in introducing estate tax,so it is necessary to conduct an in-depth study on the issues related to the introduction of estate tax in China from the actual situation.This paper analyzes the theoretical basis of estate tax and the mechanism of estate tax to promote common prosperity,starting from the theory of estate tax.It analyzes the conditions for the introduction of inheritance tax in China under the new situation,taking into account the real situation and the debate on whether to introduce estate tax or not.Then,the difficulties of introducing estate tax in China are studied,and in-depth analysis is made in terms of the role of promoting common prosperity,the choice of the timing of the introduction,the competitiveness of the tax system,and the social environment.Meanwhile,the situation of estate tax collection in OECD countries is studied.On this basis,the general idea,principles and policy recommendations for the introduction of estate tax are proposed.The article suggests that although estate tax helps to promote common wealth,it is subject to some factors and requires a flexible strategy to find the right time and to do the relevant institutional design.In terms of specific roles,estate tax,as a tax levied in the process of intergenerational transfer of wealth,can regulate the distribution of residents’ wealth and thus narrow the gap between the rich and the poor.At the same time,the introduction of estate tax can guide the society to make charitable donations,promote the third distribution and realize the voluntary transfer of social wealth.Moreover,estate tax helps the formation of a fair social environment,advocates the concept of hard work and fairness and justice,and creates a good environment for common prosperity.The introduction of estate tax in China has favorable conditions such as a rich tax base,the support of advanced technology in the digital era and the rising tax awareness of residents.From the perspective of China’s economic and social reality,it is necessary to deal with many relationships such as wealth regulation and economic growth,tax system improvement and tax system competitiveness,balancing macro tax burden and reducing residents’ sense of tax burden,in order to bring into play the role of estate tax while reducing the cost and negative impact after its introduction.