Home >> Working Paper
The Exemption and The Redistribution of The Personal Income Tax
Read        DownLoad
TitleThe Exemption and The Redistribution of The Personal Income Tax  
AuthorTian Zhiwei,Hu Yijian and Gong Yinghua  
OrganizationShanghai University of Finance and Economics 
Key Wordsthe exemption, income redistribution, the flat tax, multistage progressive tax rate, personal income tax 
AbstractThe exemption has been the key area of personal income tax reform. The study of the relationship between the exemption of personal income tax and income redistribution effect has important theoretical and practical significance to improve the theoretical system of the taxation system and guide the reform of personal income tax. In this paper, through the construction of the personal income tax model, it's has proved that the size of average effective tax rate and the amount of personal income tax exemption is inversely proportional, and the size of progressivity and the amount of personal income tax exemption are proportional. What's more, with the increase of the exemption, the income redistribution effect of personal income tax increases firstly and then decreases with an inverted U shaped distribution. The conclusion of this paper has very good applicability, and can be extended to our country at the present stage of the wage income tax and the future comprehensive collection of personal income tax. 
Serial NumberWP1315 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153