Research On Fiscal Policy Of Realizing The Resident Income Doubling Plan

The goal of realizing the resident income doubling plan from2010to2020was first proposed in the report of the18th national congress of the CPC, and known as the Chinese version of the "National Income Doubling Plan". This plan quantified the growth target of resident income to2020. It is significant for expanding domestic demand to promote economic growth and narrowing the gap between rich and poor to maintain social stability. The plan has been in the stage of implementation, as the fiscal policy which government used as a common tool surely will play a decisive role in the plan’s implementation process. So the research of how to use fiscal policy to realize this plan has an important practical value. Doubling plan is not a simple problem of increasing income, but also a social change which involves three aspects of the development of economy, controlling inflation, narrowing the gap between rich and poor. Therefore, the research on theme of this article not only has a common point with the research on promoting income simple, but also has a unique linked with economic development, controlling inflation, narrowing the gap between rich and poor.This article adopts the literature research method and comparative research method. Based on reading lots of related literature, conclude and compare research status of residents’ income growth at home and abroad. Foreign scholars claim to raise the income of residents by implementation of the proactive fiscal policy to promote employment, tax, transfer payment, strengthening the education and human capital investment, perfecting social security system, union bargaining. Domestic scholars claim to raise the income of residents by tax, transfer payment, perfecting social security system, offering more public service. Especially paying great attention to the research on fiscal policies of promoting farmers’income is different with foreign scholars.Using qualitative analysis clarify the connotation of resident income doubling. Namely, it is the actual purchasing power of residents disposable income doubled after deducting the price. On the basis of grasping this connotation,using theoretical research method analyze the relationship between income growth and economic growth, the relationship between income multiplier and fiscal policy. Using chart analyze the problem of residents income growth continues lagging behind economic growth, the growth of rural residents income being lower than that of urban residents income, structural irrationality of income growth. The development of predictive analysis concluded that the moderate growth of economic, the gradually accelerating urbanization, the diversification of income source will all increase the possibility of plan’s successful implementation. But the factors like the rising in price, the aging of population, the low worker quality and low production efficiency, the deficiency of collective wage consultation system and reasonable salary increasing mechanism, the shortcoming of the government service and management level, the difficulty of low-income groups’income increasing, the irrational income distribution pattern will constrain the smooth implementation of the plan.Learn from international experiences by comparative research method, take Japan’s fiscal policies such as increasing public infrastructure investment and encourage private investment, increasing financial input to education and technology, high subsidies to agriculture, subsidies to low-income groups, tax cuts during the implementation of the "national income doubling plan" as a reference. The policies of realizing the resident income doubling plan are proposed from two aspects of fiscal revenue policy and fiscal expenditure policy according to the situation of our country. The former includes improving the tax system, and vigorously implementing structural tax cuts; the latter includes increasing input to basic industry and public facilities, improving the system of transfer payment, increasing subsidies to low groups and farmers, increasing input to education and gradually achieving the equalization of public services.