Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China
Volume 7, Issue 3, June 2018, Pages: 146-151
Received: Jul. 18, 2018;
Published: Jul. 19, 2018
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Jing Xue, Finance and Accounting Research Center, Fujian Jiangxia University, Fuzhou, China
Li Lin, Accounting School, Fujian Jiangxia University, Fuzhou, China
The government in China carried out the personal income tax reforms in 2006, 2008, 2011 respectively, which focused on increasing deductions and reducing the tax rate brackets for wages and salaries. Using the survey data of the Urban Household of Income and Asset of 2013 from China Household Income Project, this paper will examine the impact of income tax reform for wages and salaries on income redistribution. The conclusion is that the personal income tax reforms are not efficient at improving income redistribution in China, but instead exaggerate the gap between individuals’ tax burden of their wage and other income sources.
Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China, Social Sciences.
Vol. 7, No. 3,
2018, pp. 146-151.
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