The Impact of China’s Tax Policy Reform on the Gap between Rich and Poor

Abstract

Common prosperity is the goal that the Chinese government is constantly striving for, and the reform of the tax system is the only way to achieve this goal. In the past ten years, China has continuously carried out tax reform and achieved good results. Previous scholars have conducted in-depth research on China’s tax reform from multiple perspectives. Previous research has focused on the impact of tax policy on China’s economic growth, exploring how taxes stimulate or constrain the development of different industries and regions. And early research focused on social equity issues, examining the impact of tax policies on income distribution, and how to reduce the social gap between rich and poor through taxation. These studies provide lessons and theoretical support for current tax reforms and provide a basis for future research. This article will start from two aspects: personal income tax reform and value-added tax reform, and analyze the impact of personal income tax and value-added tax reforms on the gap between the rich and the poor.