Empirical Research On Property Income Of Urban Residellts In China

With the market-oriented reforms of China’s economy, the property income of residents is not only regard as an important indicator to measure a country’s wealth, but also become a major contributing factor to the increasing domestic income, which could narrow the gap between the rich and the poor. Based on the analysis of the status of the total income and property income of China’s urban residents, it shows the total income inequality in China’s urban residents. It includes the total income inequality, the internal inequality of property income, the overall inequality and the regional differences of overall income inequality. I found that the property income inequality was very serious. Then the impact factors were concluded to analyze which one could lead to uneven distribution of property income. This article was using the Gini coefficient decomposition method to decompose the property income of China’s urban residents based on several factors, and personal income tax was conducted quantitively on the property income to test its moderating effects. The research results show that the Gini coefficient of property income presents a rapid growing trend, which to some extent proved the Matthew Effect and the expanding gap between the rich and the poor. Property income has a high Gini coefficient, but due to its small base, its contribution rate to the total income inequality is still relatively small. The channels of investment for China’s urban residents are relatively simple, and the property income is more sensitive to the financial environment. Based on the current classified taxed mode, the regulating effect of personal income tax on the property income inequality is not obvious, which implies the failures of taxation adjustment policy, and it can not deploy the social wealth effectively so as to narrow the gap between the rich and the poor. Besides, the internal inequality of property income is also worthy of our attention. Secondly, taking Brazil and India for instance, this paper made comparative analysis to show how other BRIC countries performed on narrowing their income inequaity so that China could learn from them. In order to narrow the gap between the property income of China’s urban residents, this article is attempting to give several appropriate policy recommendations, which include the reform of the distribution system, to improve the fiscal and taxation policies, to expand the revenue-generating channels, to improve the investment environment, etc.