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Estate Duty Estate Duty goals and objectives can not be the reason enterprises


Estate Duty Estate Duty goals and objectives can not be the reason enterprises

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									Estate Duty Estate Duty target goal can not be attained because

 target enterprises and the reasons for estate duty
 present, many scholars, the article pointed out that the Government
should levy of estate duty on the agenda on the grounds that the
introduction of estate can achieve the following objectives: to increase
revenue, enhance the ability of macroeconomic regulation and control;
regulate unfair social distribution, to prevent the rich-poor divide is
too large; improve the property tax system. The author believes that the
current situation, the purpose could not be reached, inheritance tax is

 1, inheritance tax can not achieve increased revenues, enhance the
ability of financial macro-control objective

 revenue share of GDP decline seriously weakened financial macro-control
capacity, the process of forcing the pace of the market slowdown. The
Asian financial crisis, growth rate of 8% in 1998 to ensure that state-
owned enterprise reform entered a crucial moment of the severe situation,
Jiang inheritance tax in the order of the agenda should be reasonable and
among the things. But it solve the current financial difficulties, if not
useless, it is up to drop in the bucket.
 financial difficulties and changes in China's economic system attendant,
from a macroeconomic viewpoint, it is the bearer of the costs of reform,
the planned system to a socialist market economic system in the process
to the tax from the Decentralized before repayment, the Financial pioneer
and clean up the battlefield has always been the identity exist.
Foreseeable future it will also play for a long period of time such a
role. From the microscopic point of view, the tax loss, extra-budgetary
and administrative staff expansion, duplication, inefficient use of funds
led to growing budget deficits. But all this does not show that the
financial situation, such as government statistics show that as
difficult. As from 1980 to 1995, fiscal revenue in GDP rose from 24.28%
down to 11.20%, lower than average level of developing countries. But
according to international practice, the unity of both budgetary funds,
revenue share of GDP can be higher than 20%, and most developing
countries the same level. This could explain some ways to the existing
financial system to change about the technical, financial difficulties of
the situation can be greatly eased.
 along with property taxes from the main tax transformed into secondary
tax, inheritance tax effect of financing has been very limited. The
United States in 1985 and 1993 were 5.6 billion inheritance tax revenue
and 93 billion yuan, accounting for federal income tax of 0.7% and 0.9%.
Since China has not levy inheritance tax, no way of knowing the true
figures, but by estimation, if the levy of this tax, inheritance tax
revenue share of the total tax revenue would not exceed 1%.
 weakening caused by the role of inheritance tax revenue because a lot
of, mainly in the following areas:
 first, under public ownership, public ownership of land, public
ownership of means of production, to determine the individual has
essentially only confined to means of subsistence, but almost impossible
to have a capital property. The average of the distribution system,
making personal income is mainly income from labor, the liberation of the
initial denial of the original exploiters of the old society has to
overcome the irrational distribution of wealth. Therefore, before the
reform and opening up their personal property in addition to their basic
survival than nothing, there was no need to levy inheritance tax. In
China, the personal property of the formation of the last 20 years,
things, various economic sectors coexist, encourage some people get rich
first policy and the distribution pattern changes, making steady increase
in personal income, personal property of rapid expansion. But this does
not become the basis for the levy of estate duty. Because the estate only
after the death of the owner of the property to the introduction, and
these property owners prime of life, from the normal death of an
estimated average of at least 20 years, 2 too early now inheritance tax,
even if the levy will As the tax base is too narrow and can not achieve
the desired income.
 second, serious property taxes due to avoid taxes and the lack of
effective means to combat and prevent known as "tax evasion and fraud in
the school." The suppression of the fundamental ways to avoid taxes is to
set up a property declaration system and implementation of bank deposits,
real name system, complemented by rigorous inspection and penalty system
for tax and the property just a scientific evaluation system. However,
the series system is established depends on the completion of the market,
gradual reform slowed down the process. As the tax imposed mandatory, so
the motivation to minimize tax liability makes the property owner
sufficient time in his lifetime and a variety of means to avoid estate
tax liability. To complete the system, strict administration of the
United States known for its estate levy to the equivalent of only 10% of
taxable income, in China, the above system has not yet established, the
situation is not optimistic than the United States.
 third, leading to increased cost of estate tax revenues decreased. The
increased tax Cheng Ben is a worldwide, such as the United States, in the
early 80s of this century, the income tax Tigao 1% Qi Mei Chouji one U.S.
dollar will result in tax revenue Ëù added efficiency cost rate to
increase revenue 17% to E 56%. In China, Hunan Province, according to a
survey the National Tax System by 1995 the average cost of income tax
rate to 5.31%, 47.3%, meaning that only 50% of net income tax more. By
the individual tax rate was actually an incredible 179%! On how to
increase revenue? How to alleviate financial difficulties, improve
financial macro-control ability?
 fourth, if not taken into account if inheritance tax, will lose the
estate tax for non-Chinese residents of the sovereignty, resulting in
inequality of national treatment will also lead to the loss of state tax
revenue, then you can perfect the income approach would reduce this loss.
The legal system and property in the property declaration and other
systems has not been established when the flow of the stock of assets and
division of assets is difficult in reality, clearly, income and property
of the conversion is extremely convenient. Strengthen the property owner
a source of lifetime income levy, the proceeds into property taxpayers
will be completed before the tax to the state treasury, the same can not
prevent the levy of estate duty and income forms of conversion as a
result of tax loss. Because personal property, intangible personal
property as a heritage is not taxed, while the real and tangible personal
property tax in the lifetime is already up to. Clearly, improving the
existing tax provisions to open up new taxes than the design from the
system in terms of more productive, resistance is also small, and there
are strong technically feasible. So, can also do the time is right after
the introduction of all aspects of estate preparation.
 2, inheritance tax can not achieve the unfair distribution of social
regulation to prevent excessive wealth divide purpose

 to regulate society through the introduction of the unfair distribution
of estate duty, must have the following three premises: 1 of social
wealth are concentrated in few hands, a serious loss of social justice;
second estate can truly play the role of regulating unfair social
distribution; third inheritance tax on the fair the efficiency of
correction will not cause a high cost that it can be limiting the scope
of the adjustment, "Efficiency and equity" between.
 20 years, accompanied by the formation of a middle class, rich-poor
divide in the society gradually increased, the specific performance of
urban and rural residents in China's income Gini coefficient increased
year by year. From 1981 to 1995, urban Gini coefficient rose from the
0.2417 to 0.3087, the rural Gini coefficient corresponding to 0.1574 and
0.2085, calculated in accordance with the national group weighted Gini
coefficient of income from 0.2780 to 0.0735 0.3515,15 annual growth,
annual average of 0.005. Be judged on the basis of today's social
distribution of income, too unfair. Because first, remove affected income
public ownership aspects aside, just from the difference in the level of
income distribution, with reference to international common practice, the
Gini coefficient of 0.5 or above at least to the level before they could
claim to be a trend levels differentiation. In term of economic
development in the people or the relative income gap between families
expanded, but including Pinkun Jiecengzainei various walks of life Juedui
income levels are Pubiantigao, Zhi Shi De Di Shouru class income growth
in the most slowly (per capita income growth ). It is predicted that the
country's total population, the poverty rate from 60% since the reform
has been substantially reduced to about 10% of the ground. Thus, we can
say that the situation of China's income distribution differences at this
stage is about equivalent, it is far from the point of polarization, but
has been out of the traditional egalitarian state.
, however, must be clear, weak information systems in developing
countries, statistics are false, making the calculation of the Gini
coefficient, the results can not reflect the differentiation status of
rich and poor in China today. Because of the Gini coefficient is the
Government's knowledge, based on the income derived from its survey of
household incomes are often limited to the normal wage income. In real
life, it can cut this paper from www.5udoc.com [worry documentation] to
collect and organize, for the original author! Body felt really rich-poor
divide has been very dramatic. Wealth increasingly concentrated in few
hands, social justice has been seriously damaged. Causing social
injustice is because the distribution of well-known rent-seeking income,
gray income, underground black economy can not be included in the survey
out of the presence of illegal income. It is not only a non-fair and
unjust, have seriously affected the social and economic, hindered the
process of the socialist market economic system.
 matter of fact, we have fallen into a "prisoner of two difficult
 first division of social wealth has created a distortion of fair,
resulting in the loss of social efficiency. Can control from the
government and control of people's income, the community distribution is
consistent with the principle of giving priority to efficiency,
inheritance tax can only be carried out in this part of the income
redistribution, because the government can not be on the income tax is
not yet clear. This part of the income Gini coefficient is considerable,
there is no unfair social distribution, inheritance tax will not achieve
the purpose of regulating social equity.
 Second, rental income can not express, the Government can not on their
taxes, do not fail to adjust tax is fair. In order to carry out tax, at
least to solve two problems: First, the property depends on the strict
reporting and real name system for bank deposits to establish. Once the
two systems to establish and improve, then do not exist non-revenue,
which is obviously a "chicken and egg" problem. Second, once the right
has not been established as legitimate income levy will allow the
legalization of illegal income, the tax authorities become "money
laundering" in place, it goes against the basic intent of the judiciary,
and equal protection of the crime. Finally, rent, income and other ill-
gotten wealth of gray as the owner can get the revenue, then the control
is not difficult to evade taxes. In the current tax department management
of tax collection authority is not independent of China, once the
inheritance tax, first with tax evasion by these people. In this context,
the regulation of estate only to those hard-working people get rich and
effective, except in the illegal income, would not exacerbate social
injustice? This is clearly contrary to the intent of the original levy.
So we said, to solve the problem of unfair social distribution, the
current tax that simply relying on economic means will not have any
effect, just as the government system reform, the completeness of the
law, through tax measures outside the party might be resolved.
 can not be achieved in both income and can not effectively regulate the
premise of fairness, the levy of estate duty will result in the loss of
social efficiency. Any excess revenue would lead to the burden of
inheritance is usually difficult to pass and implement the
characteristics of high progressive tax rates on the efficiency of
hindered larger than that of other taxes. In order to avoid being heavily
taxed after death, property owner in his lifetime is bound to spend more
and waste, which inevitably affect the formation and accumulation of
capital, hindering people's desire and ability to invest savings, thereby
preventing the development of production. This is especially the
performance in China. The Chinese nation has always pursued "inherit his
father, natural," the traditional thinking of leaving for future
generations a wealth enough to feast is still fighting for his life most
of the goals and motivation. Since we follow the reform "to allow some
people get rich first" approach is the traditional thinking of a clock
with this complement each other. Wealth through hard work to promote
social efficiency, played a good example. Since property taxes are mainly
in terms of private property, so the heavy inheritance tax would
seriously undermine the private capital accumulation, and dampen
enthusiasm for production workers, is extremely unfavorable to the
private economy and private economy. Inheritance Tax and the current
policies run counter to the spirit of.

 3, inheritance tax can not achieve the purpose of improving the property
tax system
 levy of estate duty has been considered an important part of improving
the current property tax. However, the world's tax practice, the
inheritance and gift taxes with supporting the existing contradictions
make the ownership of their taxes gradually deviated from the property
tax system and tend to income tax. The first general income and estate
income is sometimes difficult to clearly defined, particularly in equity
securities and other intangible personal property, outsiders usually
difficult to establish general personal income or income from the
inheritance, so the asymmetry of information can easily lead to double
taxation or tax evasion ; Second, the use of a total inheritance tax,
irrespective of the taxpayer's original tax capacity of unfair. Based on
the above issues, the United States, Musgrave urged that the exemption be
attributed to the total income in the income tax imposed. This will help
simplify the tax system, reduce the charge resistance. For the collection
and management and other aspects of the basic conditions are relatively
backward countries, it is especially important. In that respect,
inheritance tax on the improved property tax system may be necessary.
 in another respect, in the process of market reform, the importance of
tradition and practice, not easily remove the main effects of community
traditions and practices are proven to be extremely valuable experience.
China's traditional Confucian culture led to the family the basic unit of
wealth owned, "the gentleman justice over profits," such as possession of
the rich should not reveal the tax used to make sense of citizenship is
extremely difficult to raise in a short time, also makes the property
declaration, bank deposits, real name system difficult to implement.
China's estate from the short-lived outside the Republic of China, has
never really tried it before, I'm afraid with the traditional habit of
not unrelated to the resistance. The establishment of the socialist
market economic system today, if for tax reasons while ignoring the
traditions and practices in China will no doubt slow down the process of
the market, This is taken care of fish eat and move.
 if the Government is to achieve the purposes of tax provisions insisted
on the full inheritance tax, you may leave a joke, this is a lesson of.
As long feast tax levy has remained a dead letter, the lack of supporting
all aspects of the implementation of measures and specific effects, the
levy of estate tax probably will not deviate from the stereotype of the

 4, the conclusion

 government levy inheritance recent difficult to achieve three
objectives. Only with the market's advance, the systems and technical
methods improve, the side is a good opportunity to levy inheritance tax,
and only then can achieve these goals.
 Notes: 1 The World Bank data show that in 1985 the proportion of
property tax revenue to total revenue, 3% Asian developing countries,
industrialized countries 2% (taking into account China's estate tax base,
collection and other factors) . 21,987 average life expectancy in China
was 69.1 years. "Chinese society statistics -1 993", China Statistics
 main reference:
 1. Chenzong Sheng: "China's urban income distribution, differences in
status, trends and influencing factors", "Economic Research" 1997, No. 3.
 2. Jiang Xiaohui: "property tax international comparison", China
Financial and Economic Publishing House, 1995.
 3. Yuan Zhenyu: "Tax Economics", China Renmin University Press, 1995.
. Wangzhuan Lun: "Western financial and economic theory" (below), Chinese
Commercial Press, 1993.
 5. Musgrave: "Comparative Financial Analysis", Joint Press, 1996.
 6. World Bank: "The world experience of tax reform", China Financial and
Economic Press, 1996.
. Hujin Liang: "Analysis and collection costs of the investigation," "Tax
Research," 1997 4.
 8. "China Statistical Yearbook" (1996, this paper from www.5udoc.com
[worry documentation] to collect and organize, for the original author! /

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