Abstract
With the constant development of reform and opening up, China’s economy and society obtain considerable development; the living standards of the people continuously improve, and the economic inequality in China widens day by day. Therefore, the voice for demand of levying inheritance tax to regulate the economic inequality becomes louder and louder, but the substitution effect of taxation makes us consider the negative impact of inheritance tax on economic efficiency. This text selects the effect of levying inheritance tax for the capital outflows as the breakthrough point, and makes empirical analysis on its expected effect for capital outflows. The conclusion indicates that the levy of inheritance tax will accelerate our country’s capital outflows. Facing the economic and social situation in our country, this text considers that China is not suitable for levying the inheritance tax at current stage and we need to take other measures to adjust the economic inequality.
Highlights
Shun’an (2013) [7] pointed out that levying inheritance tax for fairness would promote the efficiency and would not have greater impacts on capital outflow.Jia Kang (2014) [8] argued that if we only considered tax burden, the riches would have to flee to developed counties with higher tax burden or tax havens with small markets
If the inheritance tax is levied at current stage, the capital that should have entered into substantial economy for expanding reproduction is allocated to other channels, such as, to allocate it to the regions in other countries with low tax rates, etc., which is extremely bad for the development of the real economy
From the economic and social situation faced by China, our country does not have the condition for levying inheritance tax, so it is not suitable for levying the inheritance tax at the current stage
Summary
Chinese People’s Livelihood Development Report [1] [2] released by Peking University points out that the Gini coefficient of resident property in our country reached 0.73 in 2012 and Li Shi (2015) [3] believes that Gini coefficient of Chinese property reached 0.739 in 2010, which shows that the Gini coefficient of Chinese property has the trend of expanding. In terms of another aspect, with the constant improvement of the level of open economy in our country and gradual opening of the capital account in China, the situation of our country’s international balance of payments is increasingly serious, and the scale of capital outflows gradually expands. If our country levies the inheritance tax at current stage, will our country’s capital outflows scale further expand? This text takes the expected effect of levying inheritance tax for the capital outflows in China as the breakthrough point to discuss this problem from the qualitative and quantitative perspectives, and discuss if China is suitable for levying inheritance tax in the current stage based on this If our country levies the inheritance tax at current stage, will our country’s capital outflows scale further expand? This text takes the expected effect of levying inheritance tax for the capital outflows in China as the breakthrough point to discuss this problem from the qualitative and quantitative perspectives, and discuss if China is suitable for levying inheritance tax in the current stage based on this
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