Research On The Fairness Of National Income Redistribution

Since the reform and opening up, China’s economy has maintained asustained and rapid growth，the overall economic strength enhance greatly.According to the GDP measure, China has become the second state only to theUnited States of America’s economy. However, because of market economicsystem of our country and the income distribution policy is not perfect in thetransition period, income gap of residents in our country is widening. China’stransformation from one of the most average social income distribution underthe planned economy,the world income distribution gap significant economies.The cause of the income gap is various,it can be analyzed from the marketfactors, historical and cultural and political system and so on. The focus of thispaper is to research on the income gap at the present stage of our country fromthe fairness of income redistribution itself. No significant reduction in the gap ofincome of our country dweller in the background, to study the fairness ofincome redistribution, is beneficial to study deeply China’s national incomedistribution gap.Redistribution of national income is based on the initial distribution,government narrow the gap by means of redistribution of income distribution,regulation, promote the activities of the fairness of income distribution. As theredistribution policy aims to narrow the income gap due to the transition periodthe system is not perfect, the fairness of the national income redistribution itselfworthy of discussion.This paper focuses on the research of the fairness of the national incomeredistribution, classified taxation and public expenditure, the tax revenue is divided into the initial distribution and redistribution. The public expenditure isdivided into equity and efficiency expenditure. Then, through cointegrationanalysis and Granger causality test Grainger respectively analyzed the fairnessof taxation and redistribution of fairness of expenditure. On the base ofempirical research, from the tax, transfer payment and the social security system,analyzing the reason why the redistribution of national income reverseregulation of the income gap of residents. Finally, to promote the nationaldistribution of income gap from the tax, transfer payment and social securitypoint.