Redistributive Effects of Personal Income Tax Reform on Wage and Salary Income: The Analysis of Micro-data

Based on the micro data,the article investigates income and redistributive effects of personal income tax reform in 2011 and on further improved exemption. The results show that the reform in 2011 has reduced tax revenue,w eakened the progressive personal income tax and reduced its income redistribution. If further increase the exemption,it only benefits the people of 20% highest income and increases the income distribution gap further. Therefore,future personal income tax reform is not to focus on increasing exemption,but to perfect the optimal tax rate and tax structure.