Research On The Application Of The New Income Distribution Theory

Since 1978,China's economy has experienced nearly three decades of rapid development,and the national income level and consumption levels have achieved substantial growth.But after the financial crisis in 2008,the world economy has long been in the doldrums.The decline in external demand and the decline in investment are all manifestations of declining economic development.And the Chinese economy has gradually entered a period of structural adjustment which is called the new normal.The economic fundamentals have undergone substantial changes.In China,the importance of internal demand,especially internal consumption,is growing.Based on the basic situation of the new normal in China's economy,this paper puts forward the concept of new income distribution.The theory of new income distribution combines the classical theory of labor value and the theory of income distribution,which divides a person's life cycle into three stages:young,middle age and old age,and puts forward the characteristics of consumption according to different stages.Of the income of the stage of adjustment,making the income and each stage of the consumer demand to match.Young people,consumption demand is large,but the income level is low.Middle-aged income gradually increased.Some people in the elderly's consumption and income declined,when the other part of the elderly also has a higher income.But the consumer demand is low when their savings is more.So through the new tax adjustment,to effectively improve the level of national consumption,and to match the various stages of consumer demand and income.The adjustment of government tax policy needs to be carried out according to the change of consumption demand in three stages.Through the fact that the article analyzes the causes of the high consumption demand in the young period.Through quantitative analysis,it is clear that consumption has a greater contribution to economic growth.The article compares the marginal propensity of consumption of young people and the elderly,which shows that young people have higher consumption demand.That provides the basis for the theory of new income distribution.At the end of this paper,a set of policy measures are put forward for the theory of new income distribution.Through the adjustment of tax policy and fiscal revenue policy,the paper proposes a multiplier plan for young workers over 18 years of age to stimulate consumption demand to achieve the purpose of stimulating economic growth.In this paper,all age groups are divided into three phases by age.The first stage is the concession period,which also called the young period.The government increase personal subsidies,and reduce tax burden to improve the income of young people.The second stage is the burden period,which called the middle age period.The individual by paying high taxes and security payments to make up for the government's first stage of expenditure,while providing protection for post-retirement life.The third stage is a stable period,which is the elderly period.The government,while safeguarding the basic welfare of the individual,adjusts the taxation of different people according to the actual situation.On the basis of fairness,to achieve consumer demand and the level of income at all stages to match,driven by national consumption and even the overall demand for internal boost.