Fiscal Policy To Adjust The Distribution Of Income Of Urban Residents

Income disparities and the constant expansion of consumption continues, there are two organizations in china. They attracted the attention of the economist and relevant research is also very much . I study the correlation between the two.That is one of the important content of my paper .Based on china's economic structure, I choice urban as my study, and analysis the gap between their income and consumption. Choosing urban because at one hand the gap of the urban residents th in income distribution is obviously and on the other the trend, as china's economic growth and urbanization, the speed of the future will be transformed into town residents .Selecting two indicators, the income gap coefficient and consumptiong gap confficient. By empirical analysis ,I found that the two of the change in trend and height are similar, this illustrate the effcct of the gap in income and consumption are clearly.Town residents' income distribution has not noly affect the consumer, but also related to social stability and harmony, so it has important and far-reaching political significance. How can we adjust the income gap?Insisting on one of the the important policy functions ,which is that'conciliation income gap, promote social justice',I discussed this problem from the perspective of fiscal and taxation. Taxation and finance have significant impact on the income of urban residents;and are required the combination of thinking. Tax revenue is the most important component of finance,they need cooperation. There are many shortcomings in the existing taxation system, many taxes have problemds, lacking an overall coordination and direction. The author discusses how to narrow the gap in income distribution of urban residents,according to the principles. According to the mechanism of taxation,I discussed it in primary distribution and again distribution . Pointing out the shortcomings of the taxation and offering some suggestions. Our financial activities have two main problems in regulating income distribution fo urban residents:the first one is that erevenue growth is far higher than the GDP growth, income gathered into government departments, residents' income growth is slower than the economic growth levels,the total of residents' income is not engouh ,that has increased income inequality .The second is financial expenses to reduce income disparitiey of income is not enough. Especially have many problems on security and equaling of basic public, therefore, I give related policy advices.