Fiscal Policy Choices Of Regulating China's Personal Income Distribution Gap

Since reforming and opening up, China's personal income level have increased significantly, but at the same time, the income gap contradictions become more and more obvious, and it had begot a tremendous economic and social impacts in China. The construction of a harmonious society need to narrow the gap between personal income distribution and balance the distribution of incomes, therefore, the issuees of devoting systematic study in the distribution of incomes have great theoretical and practical significance. This paper cited a lot of data to measure income distribution gap, and also used various indicators of personal income distribution gap, and on the basis of the results, obtained the conclusion that China's personal income distribution gap is too wide. At the same time, from the development of market institutions and historical changes of policy, income redistribution and function, paper makes in-depth analysis of the causes of the gap. The distribution of income is one of the important functions of financial, fiscal policy will undoubtedly be responsible for the adjustment of China's personal income distribution gap. Of course, fiscal policy for adjusting gap will need to run through some principles and objectives, that is, through the principle of fairness and efficiency, the goal of adjustment should be from the two aspects of quality and quantity. Finally, we focus in the fiscal policy of narrowing the gap between China's personal income from the perspective of revenue and expenditure. From the perspective of Revenue, paper will give some suggestions about improving the personal income tax, reforming consumption tax, also made in-depth analysis on inheritance tax and gift tax, the conditions of levying tax. At the same time, proposed to levy a tax in stead of property taxes, urban land-use tax, and other real estate property tax. From the perspective of financial expenditure, give some advises about improving the social security system, begin to levy social security taxes, to narrow the gap between personal income distribution should increase public spending in education and employment, financial support for agriculture expenditure and interregional transferring payment.