Across The "Middle-income Trap" And The Fiscal And Taxation System Research In China

Chinese economy has been growing rapidly in the past30years the since the reform and opening up. In a critical period of economic and social development, a particular aspect of the problem may lead to disastrous consequences, especially to a much larger and more complex economy. The experience of other countries, Japan, South Korea for example, the economic transition of these countries to a new stage of development is a difficult process. In addition, the reality may be various unexpected events occurred, a variety of challenges for China’s economic and social development, which are worth noting.Our GNI has broken through the$4200in the year of2010, and China has entered the ranks of the middle and high-income countries. Judging from the past experience, the growth model of middle-income economies from low-income economies to climb to the high-income economies cannot be reused generally, the original growth mechanism would become an obstacle. So it’s difficult for these countries to cross the so-called middle-income trap, and they would face the stagnation of economic, and fall into the middle-income trap. So," Middle-income trap" has become a serious problem that we have to face, have to solve immediate problems, which could not be solved by the GDP reaching second in the world. It’s a real challenge in the coming period.Countries around the world are facing a variety of economic growth challenges, and many developing countries in the process of economic growth are facing the problem so-called "middle-income trap".Through the analysis of its causes, performance and the relationship with economic growth, and lateral international comparative study could reveal how the middle-income trap appear, and how to affect our economic development, and thus can explain how to break the shackles of the middle-income trap and enrich the existing theory of economic growth connotation. At present, China’s per capita GDP has reached$3620, and we are in a critical period. To avoid our country falling into the "middle-income trap", we must improve the income distribution policy, income distribution system reform as a major strategic task.On the other hand, the system of fiscal and taxation system as handling the basic system of intergovernmental fiscal relations is an important means to promote the effective functioning and implementation of macro-control, but also to promote social justice, safeguarding important institutional guarantee for the stability of the state. This paper attempts to analyze the effect of income distribution from the fiscal and taxation systems and theoretical perspective, and tries to explore how to solve the problems of falling into the middle-income trap.