A Study On Tax Policy To Promote The Peasant Income Increase

With the Reform and Opening Up, China's GDP has increased rapidly. However, Rural Economy has hold decreasing proportion in National Economy and difference between the incomes of urban and rural residents has enlarged to great extent. How to increase incomes of farmers thus becomes hot issues to study for it is the key problem to solve Issues of agriculture, farmer and rural.This paper studies on how to promote the peasant income increase, through two aspects. One is from factors of production in agriculture, the other one is from the organizational form of agricultural development.To promote the peasant income increase from the factors of production in agriculture. Firstly, this paper focuses on factors influencing farmer's incomes. Through Co integration Test between agriculture infrastructural investments, agricultural loan, agricultural insurance, agricultural technology and peasants'agricultural income, it shows that agriculture infrastructural investments and agricultural loan are the key factors boosting peasants'income, agricultural insurance plays trivial role in it and agricultural technology input even hinder the process o f peasants to acquire more wealth in the long run. Secondly, as tax policy is key tool for Macro-Control, the paper lays emphasis on how to utilize tax policy to boost the development of agriculture infrastructural investments, agricultural loan and agricultural insurance thus to increase the incomes of farmers.To promote the peasant income increase from the organizational form of agricultural development. The paper discusses how to utilize tax policy to promote Industrialization of Agriculture, which is vital for increasing farms'incomes and also the inevitable trend for agricultural development. The paper suggests improving tax policy for advanced processing of agricultural products and for improving the professional agricultural cooperatives against relative problems.