A Research on the Role of Income Distribution of Personal Income Tax

Personal Income Tax is one of the important tools for the income distribution in China.Nowadays, the government focus on improving the people's livelihood,which makes tax cuts for low - income people become the mainline of Chinas personal income tax reform.In the reform of the reform,because of the drawbacks of purely increasing the exemption,there is a need to combine the increase of the exemption of the salary income with the revision of its tax rate and bracket.Only in this way can we truly make the low - income people shared thetax cutsof the personal income tax.Even so,there are also obvious limitations for the personal income tax to achieve the equity of income distribution.