Personal Income Tax Law Reform in China

Presentation requirements

A group of 5 students (max) have to prepare an oral presentation on your chosen topics. The duration of presentation is no more than 25 minute. Each member of the group must speak up. No less than 30 PowerPoint slides are expected.

There is no assigned reading for the presentation. Each group has to locate their own reference and do their original research. I strongly recommend students to consult the following leading academic journals on China: China Quarterly, Modern China, China Journal, Journal of Contemporary China and China Information. E-copy of these journals are available in the City University library website.

Here is our presentation outline: My part is Part 3. (5-6 slides)

Topic: The Impact of Personal Income Tax Law Reform on Individual in China

Part 1:

Background introduction: purpose of research, main points and structure.

Theory: Rawlsian “fair justice “concept points out that the balance between “equity and efficiency” should be the guide for reforms.

Part2: Effect of individual income tax: individual income tax history review and system operation, income redistribution effect of current tax system from the national perspective. It is concluded that the gap between the rich and the poor in China is mainly caused by the primary distribution. The policy of simply increasing the deduction of pre-tax expenses and it is not conducive to the reinforcement of income redistribution, and the poor effect is mainly caused by the backward tax system。

Part 3:

Analysis the individual income tax structure: different income levels (what impact on the gap between the rich and the poor); Progressive horizontal and vertical fairness (equity problem); Income in different regions (geographic issues). And put forward the hypothesis: if the adjustment of the employment of individuals to family can effectively alleviate the family-level difference.

Part 4:

Analysis the family taxation system: Use data, the “basic livelihood subtraction+ special deduction” method was used to conduct system simulation analysis of income redistribution effect of family taxation system received from the labor-based income syndrome. The conclusion shows that this optimized tax system not only can reduce the gap between the eastern, central and western regions of China.

Part 5:

Conclusion: Summarize the above conclusions, put forward the existing problems and reform line. Give suggestions: accelerate the pace of reform, direct implementation of comprehensive income tax, the implementation of the family as a unit of tax payment, supplementary special deduction system, fairness and efficiency.