Research On Fiscal And Tax Policy Adjusting Income Distribution Of Residents

Since China implemented the policy of reform and opening,the economy has continued to develop rapidly.China became the second largest economy in 2010.People's living standards have also improved significantly.Meanwhile,the income gaps and high levels of wealth concentration appeared.The problem of residents' income distribution needs to be solved urgently.According to statistics from the World Bank,China became the middle and high income countries in 2010.However,China is also facing the problem of how to successfully overcome the middle income trap.Judging from the developed countries,it is inextricably linked to the success of overcoming the middle-income trap and the income distribution of residents.First of all,consumption is an important support for sustainable economic development.Secondly,the reasonable distribution system helps to build a good social order,and ensure long-term sustainable economic development.Finally,the Gini coefficient of high-income countries is low,while the "middle-income trap countries" is generally high.Fiscal and taxation policy has been regarded as an important means to adjust the income distribution of residents.In practice,our country finance and taxation policy display the adjustment effect is insufficient.Based on the reality,China's general fiscal reform has been carried out in recent years.The paper mainly studies how to use fiscal and taxation policy to improve China's income distribution structure,and cross the "middle-income trap".It is not only has theoretical significance,but also has practical value.Based on the logical relationship and completeness of the research content,the paper is divided into eight chapters.The main contents are as follows:The first chapter puts forward the background and the starting point of studying the income distribution of residents.The research is mainly based on the realistic economic,social and political conditions in China.On the economic side,the insufficient consumption of residents restricts the sustainable development of the economy,which is not conducive to the strategic transformation of China's economy and crossing the middle-income trap.At the political level,we must solve the problem if we want to achieve the strategic objectives of the 19 th National Congress Report,build a well-off society in an all-round way and achieve common prosperity.The second chapter analyzes the current situation and influencing factors of income distribution in China.The Gini coefficient released by the National Bureau of statistics shows that China has more than 0.4 warning lines since 2000.China's urban-rural disparity,regional disparity and the gap between urban and rural areas is still large,and there are class solidification and intergenerational transmission phenomenon.The third chapter analyzes the impact mechanism of fiscal and taxation policies on Residents' income distribution.At present,our country's financial expenditure is not enough,the distribution of educational resources is not balanced,and the level of social security is relatively low.The adjustment effect of personal income tax is small,the property tax is absent,and the regulation effect of tax is not enough.The fourth chapter,the moderating effect of China's current fiscal and taxation policies on income distribution is analyzed.The empirical results show that the transfer payment structure in China is unreasonable and the adjustment function is difficult to play fully;the indirect tax in China plays a reverse adjustment role;the personal income tax in China has a limited adjustment function;the research shows that the inheritance tax and the property tax can play a regulatory role,but has not yet been introduced.In short,fiscal and taxation policies need further optimization and adjustment.The Fifth chapter,comparing the difference of income distribution between high-income countries and middle-income trapped countries,and analyzes the impact of fiscal and taxation policies on it.The representative countries of northern Europe,East Asia and Latin America are selected for analysis.Fiscal and tax policies in the field of redistribution in the five Nordic countries have better improved the income distribution of residents,making the Gini coefficient after tax more reasonable.Japan and South Korea and other countries,in the leap to high-income countries,fiscal and taxation policies have also played a greater role in regulating income distribution.The reason for Latin American countries fall into the "middle income trap" is that the domestic income gap too large,and the fiscal and taxation policies have not played their due regulatory role.These international practices can be used in China's fiscal reform.The sixth chapter,the construction of a balanced income distribution of residents of the financial policy system,mainly focus on narrowing the differences in educational resources,equalization of public services and accurate poverty alleviation and so on.The seventh chapter,Construct an effective tax policy system to regulate the income distribution of residents,mainly expounds the types of taxes directly related to the income distribution of residents,such as personal income tax,inheritance tax and real estate tax.The eighth chapter,conclusion and prospect.The main conclusions of this paper are as follows:First of all,income distribution is a double-edged sword,if distribution is fair,it can promote economic development,and otherwise,it will have a negative impact on the economy and society.Secondly,there is no perfect theoretical support for the "middle income trap",but the development practice of various countries showed that the income distribution has a greater relationship with it.In the Nordic countries,the fiscal and taxation policies of the countries have obvious effect on the adjustment of income distribution.In Japan,the income gap of residents is small.In the Middle Income Trap countries,such as Latin American countries,have a larger income gap.China had become middle and high income countries,but the Gini coefficient has exceeded the warning line for many years,so we must attach great importance to income distribution.Thirdly,fiscal and tax policies can be used as an important means to adjust the income distribution of residents,and some practices in high-income countries also confirm this point.In recent years,China's fiscal and taxation reform is also committed to improving income distribution,but the role of regulation is not obvious,and needs to be further improved.The innovations of this paper are as follows:(1)This paper elaborates the relationship between residents' income distribution and crossing the "middle income trap" in detail,and explains this phenomenon from the perspective of social and economic structure.(2)When analyzing the income distribution of residents,this paper introduces the human development index,which not only pays attention to the narrowing of income gap,but also fully considers the sustainable development ability of residents,and realizes the fairness within and between generations.(3)This paper uses a systematic thinking to solve the problem of income distribution of residents,starting from the "revenue" and "expenditure" of the two ends of the financial,two-pronged,put forward a more comprehensive policy measures.The inadequacies of this paper are as follows:(1)The distribution of resident income is a complicated and systematic project.Although many scholars have done much of research,there are still many fields unreached to be developed.It is inevitable that the research and proposed proposal is superficial for the perspective and scope of this paper is only a part of the system.(2)The time series data used by the research are limited by the time for the issue of income distribution.Inadequate application of modern research methods,it will affect the thesis.(3)The issue of income distribution is a dilemma for efficiency and fairness.The “degree” that we can neither excessively pursue fair loss efficiency nor be unfair because of efficiency is difficult to grasp when adjusting income distribution.