This paper examines the asymptotic marginal rate of individual income tax which maximizes China's social welfare through numerical simulation based on the elasticity of China's labor supply, income distributio...This paper examines the asymptotic marginal rate of individual income tax which maximizes China's social welfare through numerical simulation based on the elasticity of China's labor supply, income distribution and the social objectives of redistribution in accordance with the optimal direct taxation theory. Taking advantage of the optimal direct taxation model with consideration of the income effect, it comes to the conclusion that combined with China's reality, the asymptotic marginal rate of individual labor income tax in China should be between 35% and 40%.展开更多
Since the proposal of the Belt and Road Initiative(BRI)in 2013,the economic and trade cooperation between China and related BRI economies has flourished over the past eight years.The Chinese government has given top p...Since the proposal of the Belt and Road Initiative(BRI)in 2013,the economic and trade cooperation between China and related BRI economies has flourished over the past eight years.The Chinese government has given top priority to improving its doing-business environment to implement the national initiative of"bringing in"and"going abroad",which echoes the BRI economic activities.Being a core part of the doing-business environment,tax reforms and the building of a more growth-friendly tax environment serve as one of the key drivers to further attract foreign investment and encourage domestic enterprises to go abroad.This article starts with the background of China’s tax reforms,followed by an in-depth analysis of the corporate income tax and individual income tax reforms,and finally discusses the impacts of China’s tax reforms on cross-border investment and trade.展开更多
基金sponsored by the research project #2009JJD790050 and #11YJC790237 of Ministry of Education, China211 Program of Central University of Finance and Economics of China
文摘This paper examines the asymptotic marginal rate of individual income tax which maximizes China's social welfare through numerical simulation based on the elasticity of China's labor supply, income distribution and the social objectives of redistribution in accordance with the optimal direct taxation theory. Taking advantage of the optimal direct taxation model with consideration of the income effect, it comes to the conclusion that combined with China's reality, the asymptotic marginal rate of individual labor income tax in China should be between 35% and 40%.
文摘Since the proposal of the Belt and Road Initiative(BRI)in 2013,the economic and trade cooperation between China and related BRI economies has flourished over the past eight years.The Chinese government has given top priority to improving its doing-business environment to implement the national initiative of"bringing in"and"going abroad",which echoes the BRI economic activities.Being a core part of the doing-business environment,tax reforms and the building of a more growth-friendly tax environment serve as one of the key drivers to further attract foreign investment and encourage domestic enterprises to go abroad.This article starts with the background of China’s tax reforms,followed by an in-depth analysis of the corporate income tax and individual income tax reforms,and finally discusses the impacts of China’s tax reforms on cross-border investment and trade.
