China's Tax Policy Shifts Wealth Balance, Aims to Reduce Income Inequality
The study looked at how individual income tax affects income inequality in urban households in China. They analyzed different income groups and found that income inequality is increasing, but not to the point of extreme polarization. Since 2002, individual income tax has been impacting income distribution. To reduce income inequality, the government should increase taxes on high-income groups and boost the income of low-income groups. It's also crucial to combine tax policies with other social security measures to address income inequality.