China's Income Distribution Gap Analysis And Fiscal Adjustment Policies

The problem of income distribution is an old but also a fresh topic.In China, since the Reform and Opening up,it has become a popular concern with the widening gap of income distribution, and a new round of reform of income distribution system is on the way. In this situation, a research on the problem of income distribution has great significance on theory and more to practice.In recent years, Chinese scholars have carried out extensive research surrounding the income distribution. After analyzing seriously the causes to result in the gap of income distribution, the scholars have made a lot of policy recommendations to narrow the gap of income distribution.This paper summarized and concluded these research results, and it's hoped to give some help for the paper.This paper introduced some measuring methods of income distribution gap used commonly, and described the current status of income distribution gap in our country through these methods. At present, the basic status of income distribution gap in China is "four expansions":urban-rural income gap has been expanding gradually;the internal income gap within urban residents and rural residents has been expanding;income gap between different regions has been expanding;and income disparity between different industries has been expanding. Meanwhile, the paper also analyzed the reasons why the income gap has been expanding from the natural conditions,historical environmental,policy, redistribution system and the market mechanism.In addition, the paper analyzed both positive and negative effects of the expanding income gap.As for the current fiscal policy to adjust income distribution, this paper introduces the finical expenditure,(governmental)financial transfer payments and tax policy, and points out the problems of these policies while being carried, and also analyzed the causes.While introducing the international experience of fiscal adjustment policies to income distribution, I started from the general experiences and introduced adjustment policies of urban-rural income gap,the internal income gap within urban residents and rural residents and income gap between different regions respectively. At the same time, while the typical practices in some countries were described specifically.Based on research results of scholars,analysis of the current polices and foreign policy experience,this paper gives its suggestions to adjust income distribution. For financial expenditure, we must improve the expenditure proportion of people's livelihood in the central finance and change the way of expenditure to service the people's livelihood better. For the transfer payments,we should reduce or even abolish the "tax return" for central to local gradually, reduce the proportion of special transfer payments and improve the proportion of financial transfer payments.And based on a clear demarcation between central and local powers, we should establish a scientific index system of financial transfer payments according to "factor method";and gradually establish a coordinated system of transfer payments both the vertical and the horizontal.State-owned capital operation budget should play an important role in adjusting the distribution of national income from the two aspects of budget revenues and expenditures.For tax policies,we should promote the personal income tax reform actively;improve the property tax system and research to levy the estate and gift tax at the same time.