The Study Of Finance And Tax Policy Of Improving Labor’s Income Share Of National Income

With three decades of reform and opening up, China’s economy has made outstanding achievements in economic growth, annual economic growth rate10%.China has became the second largest economy in the world, following the United States. However, with China’s economic development entered a transition period, various contradictions begin to emerge, the sustainable development of economy facing challenges. In the transitional period, the structure of national income distribution is irrational. It can be illustrated clearly that the labor’s income share of national income maintained a low level and in declines, the labor’s income share of national income has decreased for10years, from49.5%to39.7%.In the international point of view, the labor’s income share of national income in China far lower than developed countries, and even lower than some developing countries. It maintained at55%In other countries, some developed countries such as the United States own one scale of higher, close to70%. The status of the labor’s income share of national income is not conducive to the sustainable development of the economy. Finding ways to improve the labor’s income share of national income is conducive to expand domestic demand promote consumer spending, so as to change the mode of economic development, then he development of China’s economy may be more dependent on endogenous motivation.This paper will analysis the current situation of the labor’s income share of national income in a comparative way:longitudinal comparison, we get the labor’s income share of national income into a longer time series to examine the evolution of the process; horizontal comparison,we compare China’s the labor’s income share of national income with developed countries data to illustrate the current situation.This paper with the labor’s income share of national income as the research object, analysis the change of the labor’s income share of national income and put forward the suggestions from the point of view of finance and tax. First, we analyzed the current situation of the labor’s income share of national income. The data analysis shows that the labor’s income share of national income in China maintained a low level and in declines. then, we try to analysis the reasons tor the decline of the labor’s income share of national income from the perspective of fiscal and tax. In the long term, structural transformation contributes to the decline of the labor’s income share of national income. However, in the short term, the growth of tax revenue, monopoly profits accounted for the decline. Then, Then by analyzing the status of the national income of developed countries in the same stage and derive lessons learned in order to gain some useful suggestions. At the end of the article put forward some suggestions from the perspective of fiscal and tax. expect to explore some ideas to improve the pattern of income distribution in China.