Research On Property Income Inequality Effect Of Fiscal Finance

Under the influence of the traditional Confucian thought of “don't always focus on the benefits”“there is no need to talk about the benefits”and the institutional constraints of socialist public ownership,on the basis of clearly defining private property rights,the property income based on property ownership has been playing a secondary role in the income distribution system of Chinese residents.Nearly 30 years after the implementation of the reform and opening-up policy,“creating conditions for more people to have property income”was written into the ruling party's ruling policy.China's income distribution system has correspondingly changed from a single “distribution according to work”to an institutional arrangement in which “factors of production such as labor,capital,technology and management participate in the distribution according to their contribution”.However,in the past ten years or so,the policy of promoting“residents' property income” has not formed a spurt of growth as expected and has become an important source of income for residents.As of 2017,the per capital property income of residents was only 2,107 yuan,accounting for less than 9% of the total income of residents,while in 2012 before the adjustment of statistical standards,the proportion was even less than 3%.What's more,due to the accelerated solidification of vested interest groups and other reasons,the inequality of property income distribution is far greater than other income types.At present,the distribution gap of property income between urban and rural areas,regions,occupations and different social groups is gradually widening.This paper focuses on integrating finance and finance into the research framework of income distribution from the perspectives of initial distribution and redistribution,and quantitatively analyzes the impact of financial development and fiscal and taxation policy tools on property income inequality.In the field of initial distribution,developed and perfect financial markets provide a good market environment for residents' capital investment and property rights transactions,and help residents to obtain higher and more standardized property income.However,due to significant differences in the degree of development of financial markets in different regions,regional heterogeneity of financial development level may become an important factor leading to unequal distribution of residents' property income.In the field of redistribution,the government redistributes and adjusts residents' pre-tax property income through tax tools such as personal income tax.On the other hand,the government's budget expenditure behavior,such as financial investment,transfer payment and government purchase,has a deepseated impact on residents' production and operation activities,and will eventually have an impact on residents' property accumulation and trading behavior.Under the main line of this research,this paper first clearly defines the connotation and denotation of property income,systematically combs the evolutionary path of property income distribution since the founding of New China,and discusses the current situation of financial income distribution of Chinese residents;second,uses large sample microscopic survey data to quantitatively measure the inequality of property income and its contribution to income inequality;third,combined with the use of macroscopic data and microscopic survey data,this paper identifies the factors affecting the level of property income of residents,and focuses on the impact of fiscal expenditure and financial development on property income.On this basis,the contribution of fiscal expenditure and financial development to property income inequality is measured.Fourthly,the microscopic simulation analysis method is used to identify the redistribution adjustment effect of relevant tax instruments on property income inequality,and simulate the adjustment effect of relevant tax system on property income redistribution.Finally,according to the results of empirical analysis,this paper puts forward some policy suggestions to optimize and reform the fiscal,financial and tax systems and improve the unequal distribution of property income.Specifically,the main contents of this article include the following parts:(1)Using the microscopic survey data of the China Household Tracking Survey(CFPS)in 2010,2012,2014 and 2016 through the Gini coefficient and Sharpley value decomposition method to quantitatively decompose the contribution of income from different sources to total income inequality,with a view to quantitatively identifying the degree of inequality in income distribution from different sources,and focusing on assessing the contribution of residents' property income inequality to total income inequality.The results show that although the proportion of residents' property income to total income is relatively low,the contribution of property income inequality to residents' total income inequality is very high.(2)Use China's macro panel data to clarify the main factors affecting the growth of residents' property income at this stage.On this basis,the contribution of relevant factors to residents' property income inequality is empirically evaluated based on macro and micro data,so as to quantitatively reveal which factors are the causes of property income inequality,and focus on evaluating the contribution of financial development and fiscal expenditure to property income inequality.The empirical results show that both fiscal expenditure and financial development help to promote the improvement of the level of property income in the region,but its effect shows the regional heterogeneity of decline from east to west.In the eastern region with developed economy and more effective government public management,the government's fiscal expenditure behavior and the development level of financial market help to better improve the level of property income of residents.On the other hand,fiscal expenditure on the whole has a weak positive contribution to property income inequality,but in the eastern and central regions,fiscal expenditure helps to reduce property income inequality,while in the western region,fiscal expenditure has become an important factor in seriously aggravating property income inequality.Both indicators to measure the level of regional financial development have a positive contribution to property income inequality.Although the contribution ratio of the two variables is different in different years,it can be seen from the full sample that the larger the scale of regional financial development,the more unequal the distribution of residents' property income will be.The possible explanation is that the development of the financial industry has helped to provide a regulated market for residents' property transactions and leasing behavior,and to guide more residents' property to enter the financial market for transactions at more reasonable prices,so that families with higher property values can profit more from it and earn higher property income,while low-income families with no or small amount of property are unable to benefit from the improvement and development of the financial market,which will widen the gap in the level of property income between rich families with property and poor families without it.(3)Considering that China has not yet officially introduced the current tax system related to property income,such as resident stock property tax and estate tax,this paper uses the microscopic survey data of CHFS,takes several major taxes related to property income,and focuses on personal income tax to calculate the redistribution effect of tax tools on property income by comparing the Gini coefficient,K index and MT index before and after tax,so as to obtain the quantitative evidence of tax regulating property income inequality.Based on the theoretical analysis and empirical results of this paper,the proportion of residents' property income in total income is low at the present stage,but its contribution to the inequality of household income is very high.Financial development promotes the growth of residents' property income while worsening the inequality of residents' property income.However,the redistribution effect of fiscal expenditure on promoting residents' property income is limited.It can be seen that fiscal and financial policies have not really achieved the original intention of "creating conditions for more people to own property income".To this end,the article finally gives corresponding suggestions for adjusting and perfecting the current fiscal and financial policies: first,the government rationally arrange fiscal expenditure and spare no expense to build an effective government;second,improving the construction of the rule of law,adjusting financial supporting policies and promoting market fairness should be need;and third,we will continuously improve the tax system and improve the effect of tax regulation and redistribution.