Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China

Jing Xue; Li Lin

doi:doi:10.11648/j.ss.20180703.16

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Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China

Jing Xue, Li Lin

Published in Social Sciences (Volume 7, Issue 3)

Received: 18 July 2018 Published: 19 July 2018

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Abstract

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.

Published in	Social Sciences (Volume 7, Issue 3)
DOI	10.11648/j.ss.20180703.16
Page(s)	146-151
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Personal Income Tax Reform, Income Redistribution, Gini Index

References

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[9]	Lan Zhang, Ganna Zhou, “The Progressivity of the Personal Income Tax and the Calculation of Redistribution effect”, Tax Research, Vol1, 2018, pp. 53-58.
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[17]	Xinyi Zhou, Feng Gong, “Income Redistribution Effect of China’s Individual Income Taxation from an open Perspective: Measurement, Simulation and Tax System Design”, Asia-pacific Economic Review, Vol2, 2018, pp. 114-123.

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Jing Xue, Li Lin. (2018). Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China. Social Sciences, 7(3), 146-151. https://doi.org/10.11648/j.ss.20180703.16

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ACS Style

Jing Xue; Li Lin. Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China. Soc. Sci. 2018, 7(3), 146-151. doi: 10.11648/j.ss.20180703.16

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AMA Style

Jing Xue, Li Lin. Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China. Soc Sci. 2018;7(3):146-151. doi: 10.11648/j.ss.20180703.16

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@article{10.11648/j.ss.20180703.16,
  author = {Jing Xue and Li Lin},
  title = {Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China},
  journal = {Social Sciences},
  volume = {7},
  number = {3},
  pages = {146-151},
  doi = {10.11648/j.ss.20180703.16},
  url = {https://doi.org/10.11648/j.ss.20180703.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20180703.16},
  abstract = {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.},
 year = {2018}
}

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TY  - JOUR
T1  - Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China
AU  - Jing Xue
AU  - Li Lin
Y1  - 2018/07/19
PY  - 2018
N1  - https://doi.org/10.11648/j.ss.20180703.16
DO  - 10.11648/j.ss.20180703.16
T2  - Social Sciences
JF  - Social Sciences
JO  - Social Sciences
SP  - 146
EP  - 151
PB  - Science Publishing Group
SN  - 2326-988X
UR  - https://doi.org/10.11648/j.ss.20180703.16
AB  - 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.
VL  - 7
IS  - 3
ER  -

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Author Information

Jing Xue

Finance and Accounting Research Center, Fujian Jiangxia University, Fuzhou, China
Li Lin

Accounting School, Fujian Jiangxia University, Fuzhou, China

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APA Style

Jing Xue, Li Lin. (2018). Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China. Social Sciences, 7(3), 146-151. https://doi.org/10.11648/j.ss.20180703.16

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ACS Style

Jing Xue; Li Lin. Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China. Soc. Sci. 2018, 7(3), 146-151. doi: 10.11648/j.ss.20180703.16

Copy | Download

AMA Style

Jing Xue, Li Lin. Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China. Soc Sci. 2018;7(3):146-151. doi: 10.11648/j.ss.20180703.16

Copy | Download

@article{10.11648/j.ss.20180703.16,
  author = {Jing Xue and Li Lin},
  title = {Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China},
  journal = {Social Sciences},
  volume = {7},
  number = {3},
  pages = {146-151},
  doi = {10.11648/j.ss.20180703.16},
  url = {https://doi.org/10.11648/j.ss.20180703.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20180703.16},
  abstract = {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.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Analysis of the Impact of the Personal Income Tax Reform for Wages and Salaries on Income Redistribution in China
AU  - Jing Xue
AU  - Li Lin
Y1  - 2018/07/19
PY  - 2018
N1  - https://doi.org/10.11648/j.ss.20180703.16
DO  - 10.11648/j.ss.20180703.16
T2  - Social Sciences
JF  - Social Sciences
JO  - Social Sciences
SP  - 146
EP  - 151
PB  - Science Publishing Group
SN  - 2326-988X
UR  - https://doi.org/10.11648/j.ss.20180703.16
AB  - 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.
VL  - 7
IS  - 3
ER  -

Copy | Download