China How Can Revenue Reforms Contribute to Inclusive and Sustainable Growth?

Revenue reforms can contribute to more inclusive, green, and sustainable growth in China. Relative to OECD economies, fiscal policy in China is less redistributive. Options for promoting more inclusive growth include improving the progressivity of labor taxes (individual income tax and social securi...

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Bibliographic Details
Main Author: Lam, Waikei
Other Authors: Wingender, Philippe
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a China  |b How Can Revenue Reforms Contribute to Inclusive and Sustainable Growth?  |c Waikei Lam, Philippe Wingender 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2015 
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651 4 |a China, People's Republic of 
653 |a Revenue administration 
653 |a Income 
653 |a Social security 
653 |a Public finance & taxation 
653 |a Taxes 
653 |a Fiscal Policy 
653 |a Fiscal policy 
653 |a Aggregate Factor Income Distribution 
653 |a National accounts 
653 |a Welfare & benefit systems 
653 |a Income and capital gains taxes 
653 |a Taxation, Subsidies, and Revenue: General 
653 |a Macroeconomics 
653 |a Taxation 
653 |a Personal Income and Other Nonbusiness Taxes and Subsidies 
653 |a Public Finance 
653 |a Revenue 
653 |a Income tax 
653 |a Social security contributions 
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520 |a Revenue reforms can contribute to more inclusive, green, and sustainable growth in China. Relative to OECD economies, fiscal policy in China is less redistributive. Options for promoting more inclusive growth include improving the progressivity of labor taxes (individual income tax and social security contributions), introducing a recurrent property tax, and finishing the transition to a comprehensive value-added tax. Higher environmental taxes, meanwhile, would promote more environment-friendly economy. These reforms could also significantly boost revenue, potentially by as much as 6½ percent of GDP. Such increases in revenue could help reduce the deficit, finance priority social and infrastructure spending, and offset cuts in other taxes. We illustrate how these revenue reforms could be part of a comprehensive fiscal package that achieves the needed consolidation in the (augmented) deficit and foster higher quality growth