The Study Of Fiscal And Tax Policy To Narrow The Income Gap Between Urban And Rural Residents Of Jiangxi Province

With the reform and opening up for thirty years, especially in the last few years,benefit from China’s economic development, the income of urban and rural residentshas continuously improved, but the enlargement of income difference reduce thehappiness of residents. Recently, the national bureau of statistics released China’s Ginicoefficient was0.474in2012, which is higher than the global average level; reflectobjectively the reality of resident’s income difference is larger. Prime Minister Wenjiabao’s government report suggests building a moderately prosperous society andrealizing “Chinese Dream” of the great rejuvenation of the Chinese nation, whichincludes the requirement of overall urban and rural development, narrowing the gapbetween urban and rural areas. Not only attaches great importance to the city, andneglected the rural areas. It cannot only attach importance to the city, ignored the rural,only attach importance to the industry, ignored the agriculture, only attach importance tothe urban residents’ income increase, neglected the farmers’ income. Many experts havelearned this question from different angles and have put forward many targeted advices.So it can be seen that the experts and government are concerned about the issue. In2012,the urban per capita disposable income of Jiangxi province has reached19860Yuan,while rural residents’ per capita net income was7828Yuan, the urban and ruralresidents’ income ration is2.54. The income gap between urban and rural areas inJiangxi province continue to expand, influence and restrict the overall coordination ofurban and rural economy development of Jiangxi province, the realization of commonprosperity, and the comprehensive construction of well-off society. As an importantmeans of regulating the distribution of income, fiscal and tax policy should play a duerole in narrowing the urban-rural income difference，but at present the role of regulationand policy options are limited, therefore, it has great significance to explore feasiblefiscal expenditure policy and tax policy from the perspective of theory and practice tonarrow urban and rural residents’ income difference and to promote fair distribution.This paper studies the present situation of the income gap between urban and rural areasin Jiangxi province, in-depth analysis the reasons from system and policy behind thiscurrent situation, and put forward to fiscal and tax measures to solve the problem.The main content of the paper research includes the following aspects: the first partis introduction, introduces the research background, practical significance andtheoretical significance; secondly reviews income distribution theory at home and abroad and the study situation of the income gap between urban and rural areas, combsthe cause of income difference between urban and rural areas and adjust the policy ofincome gap, and the research method used in this article, the innovation points anddeficiencies; the second part expounds related income distribution, defines the incomegap between urban and rural areas, and introduces the measure index of the income gapbetween urban and rural areas, finally analyzes feasibility and the necessity of the fiscaland taxation policy to adjust the income gap between urban and rural areas; The thirdpart analyzes the current situation of the income gap between urban and rural areas inJiangxi province from both horizontal and vertical, then selects the income ratiobetween urban and rural areas and the differences between town and country’s Ginicoefficient to measure income gap between urban and rural areas in Jiangxi province,and concludes that the income gap between urban and rural areas in Jiangxi provincepresents the growing trend; At the same time, measuring the difference between urbanand rural areas from other aspects, combed the income gap between urban and ruralareas, analyze the fiscal and taxation reason and other reasons leading to this difference,in order to provide more reference about the fiscal and taxation policy to narrow theincome gap between urban and rural areas; Fourth part use econometric measure toolsto analyze the influence of current financial income and expenditure in Jiangxi provinceto narrow the gap, qualitative analysis on the shortage of education and social securityexpenditure spending in the urban and rural areas; at the same time, analyze theinfluence of tax policy on adjusting the difference from the perspective of the taxsystem structure, direct tax and indirect tax, the tax policy, obtain the result that Jiangxifiscal expenditure policy and tax system tax still has limitations in terms of regulatingincome distribution; Fifth part based on the previous analysis, put forward the fiscalexpenditure policy to reduce the income gap between urban and rural areas from afinancial policies for supporting agriculture, overall planning urban and rural educationand social security spending, and put forward the policy suggestions to perfect thevarious taxes and support agricultural industrialization and farmers’ entrepreneurshippreferential tax policies.