Journal of Chinese Tax and Policy - Volume 2(2) August 2012

Editorial »


A Study of the Impact of Indirect Taxes on Income Distribution in Rural and Urban China

By Haifeng Nie & Ximing Yue

Abstract

We estimate the households' indirect tax incidences in rural and urban China by using microeconomic data. We find that the average ratio of tax to income is 10.6 per cent across the sample. The tax burdens are regressive in rural and urban areas. On average, the rural households' ratios of tax on income are lower than that of urban households. However, the poor pay more tax proportionally than the rich. The total inequality is marginally deteriorated by the indirect tax. The indirect taxes increase the inequality within rural and urban areas and decrease the inequality between rural and urban areas.

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On the Origin and Evolution of Tax Contracts: Types, Functions and Implementation Mechanisms

By Cai Chang

Abstract

In terms of social contract theory, tax is essentially one type of contractual relationship. This paper focuses on the origin and evolution of tax contract, taking its connotation and essence as a breakthrough point. Through scientific classification of tax contracts into statutory tax contracts and transactional ones, and intensive study into the functions and implementation mechanisms of both, this paper aims to explore theoretical values of tax contracts and establish the theoretical basis for tax contracts optimisation.

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Discussion Paper on China's Carbon Tax

By Jin Dongsheng

Abstract

High levels of industrial activity resulting in greenhouse gas emissions are causing climate change. These changes are likely to result in severe environmental consequences including rising sea levels, and ecological changes. There have been suggestions that China's 'carbon-based growth model' will be detrimental to its future development and transition into a civilised ecological environment. As a result carbon taxes are being introduced around the world, and one such tax is currently under consideration in China. Carbon tax policy and collection methods generally as well as China's specific example are examined and conclusions are drawn regarding temporal considerations for policy implementation in China.

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