Empirical Study on the Income Redistributive effect of Personal Income Tax in China

To what extent could personal income tax redistribute individuals’income is decided by the progressivity and average tax rate of the tax system. Thisarticle analyzed the redistributive effect of personal income tax in China from thesetwo aspects and obtained the following three judgments basically: First, the legaland actual progressivity of personal income tax have already reached the developedcountry’s level; Second, the average tax rate of personal income tax is significantlylower than the average rate in the world; Third, the income redistributive effect ofpersonal income tax is very small compared to other countries. And the core reasonis the too low average tax rate. Therefore, the key point to strengthen theredistributive function of personal income tax in China is to improve the taxadministration, expand the tax base and increase the average rate of personalincome tax to individuals’ income