Notice of RetractionThe statistics appraises on income gap by indirect tax incidence of Liaoning

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

This paper uses Gini coefficient, concentration coefficient and extended linear expenditure system, studying effects of indirect tax incidence to the income gap. Using data from the city household survey of Liaoning Province, we studied the incidences of three major indirect taxes in different income groups. The three taxes include value added tax, consumption tax and business tax. We found that the lowincome families pay more percentage of their income as indirect tax than the high income families. The indirect tax is degressive, expanded the income gap. Based on this: should adjust and improve indirect tax, should have a choice of high elastic goods and services tax levy, reduce low elastic of goods and services tax rate, and continue to improve and intensify the low-income financial transfer payment.