A Study On Fiscal Policy To Promote The Rational Distribution Of Urban And Rural Residents' Income

"Inequality rather than want is the cause of trouble".Since ancient times, peoplehave been advocating the justice, which is the foundation of social stability.Nowadays, the problem of income distribution has become the focus of attention,which attracted public attention in all walks of life. Because today, to promote therational distribution of income of urban and rural residents still is the primary taskand an important foundation of building a socialist harmonious society. In2013January, the National Bureau of statistics released the statistics of China’s Ginicoefficient of10years,0.473in2004of its lowest value, therefore, China’s urban andrural income inequality is more and more serious. How to effectively curb theexpansion of income gap between urban and rural areas, to avoid the Matthew effectseriously, to make the reasonable distribution of wealth and social harmony, is one ofthe most important issues we need to pay attention to.Fiscal policy from two aspects of fairness and efficiency in theory solve theproblem of income distribution in urban and rural areas. Especially, the people’slivelihood expenditure in2002and the structural tax cuts in2008have become thetool to solve the problem of the urban and rural income distribution.This article is from the financial point of view to study how to promote therational distribution of the income of urban and rural residents, to sum up theproblems of the financial expenditure and tax in promoting the income of urban andrural reasonable allocation, and to give the policy recommendations of solving theproblem. The main content of this paper includes seven chapters as follows:The first chapter is the introduction part, mainly introduces the researchbackground, research significance, literature review and the main contents of thispaper, mainly points out that this paper study the income distribution gap betweenurban and rural residents from the perspective of "fiscal policy".The second chapter is the theory part. Including Rawls "theory of justice",Amartya Sen’s theory of income distribution, Huang Youguang’s "a yuan of oneelement" theory, theory of people’s livelihood and structural tax reduction. As thetheoretical basis of study, the theory from two aspects of fairness and efficiency pointed out that fiscal policy can narrow the income distribution gap between urbanand rural residents.The third chapter is the analysis of the present situation of the income gap, fromthree indexes of the Gini coefficient and Theil index, the urban-rural income ratio tomeasure China’s urban-rural income gap, and points out that China’s income gapbetween urban and rural areas in recent years declined slightly, but the income gapbetween urban and rural areas between region still is large.The fourth chapter is the analysis of cause of urban rural income gap large inChina From the perspective of qualitative and quantitative using the grey relationalcoefficient. Then it points out that two dual economic structure in urban and ruralareas is the main cause of urban-rural income gap, and points out that the governmentin relieving urban and rural income gap plays anThe fifth chapter is the empirical analysis between fiscal policy and urban andrural income distribution. Firstly this paper analyzes the impact of the scale of fiscalexpenditure on the income distribution of urban and rural residents. Then in the fiscalexpenditure structure, it analyzes the overall size of the people’s livelihoodexpenditure, and points out that people’s livelihood expenditure can narrow theincome gap between urban and rural residents effectively, and then from the angle ofregion analyzes specifically effects of finance of the people’s livelihood in education,social security and employment, medical and expenditure on income distribution.Finally, this paper uses the multivariate statistical analysis to analyze from the taxburden and tax structure, and points out that the influence of China’s tax on incomegap between urban and rural residents.In the sixth chapter, based on the fifth chapter, from the perspective of fiscalpolicy gives the policy suggestions and related measures to promote rationaldistribution of income of urban and rural residents.The seventh chapter is the summary. In this chapter it will conclude this studyand points out the deficiency of this paper.