Ma, G., J. Xu, L. Shi——Contemporary Economic Policy: the Income Redistribution Effect of China's Personal Income Tax
时间:2014-08-23
This article uses continuous micro-level data to investigate the income redistribution effect of the personal income tax (PIT) in China beginning in 1997. We find that the average tax rate plays a larger role in determining the income redistribution effect of PIT than tax progressivity does. Although tax progressivity decreased as a result of rising personal incomes and a constant PIT policy prior to 2005, the income redistribution effect of the PIT improved as a result of the higher average tax