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Reforming China's Personal Income Tax




This article derives the distribution of wages in China on the basis of the Pareto distribution, and employs it to simulate the revenue and distributive consequences of various options of restructuring the personal income tax schedule as applied to wage income. The obtained simulation results are interesting and plausible and could thus inform policy deliberations on reforming the personal income tax in China.

Suggested Citation

  • Howell H. Zee & Farhan Hameed, 2006. "Reforming China's Personal Income Tax," Chinese Economy, Taylor & Francis Journals, vol. 39(2), pages 40-56, April.
  • Handle: RePEc:mes:chinec:v:39:y:2006:i:2:p:40-56

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    References listed on IDEAS

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    Cited by:

    1. Ahmad, Ehtisham, 2011. "Should China revisit the 1994 fiscal reforms?," Discussion Papers 115922, University of Bonn, Center for Development Research (ZEF).
    2. Ahmad, Ehtisham, 2011. "Should China revisit the 1994 fiscal reforms?," LSE Research Online Documents on Economics 57969, London School of Economics and Political Science, LSE Library.

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