| Income distribution is a vital sub-system in the whole social economy system. The condition of income distribution exerts influences not only on production efficiency, but also on people's benefits, even on development and stability of the whole society. Therefore, it is one of the important economy issues that were concerned much by people.With the improvement of knowledge as well as generalization of the practice, and repeated discussion in the theoretical circles, many limits to distribution mode have been loosed up gradually. It is proposed in the 16th National Congress of CPC establishing the principle under which factors of production, such as labor, capital, technology and management, take part in the distribution according to contribution, perfecting the distribution system in which many distribution modes, coexist with distribution according to work being principal. This is an important breakthrough to the distribution system reform in our country. Not only does it meet the demands of practice, but also it has solid theoretical foundation and support from practice. The paper tries to seek for the foundation on which the principle was set up that factors of production take part in the distribution according to contribution from the following three aspects as theory, objective facts and experience in order to explain that it is of importance for the Party Central Committee to put forward it and make it clear that there is misunderstanding to it at present. The above mentioned is also the main purpose of writing the paper.The paper is divided into four parts.The first part is introduction. It introduces the cause and purpose of writing the paper. In addition, it defines some relevant concepts so that we can better learn about the present situation of our distribution system and necessity to innovate it.The second part is main body. The part elaborates the foundation on which theprinciple is set up that factors of production, such as labor, capital, technology, and management, take part in distribution in terms of their contribution, including the following three chapters: theoretical foundation, objective foundation and experience foundation.In the first chapter, the author firstly introduces Marxism's relevant theory on distribution, thinking that Marxism's distribution thoughts is comprehensive and complex, which not only includes the thoughts of distribution according to work, but implies the idea that factors of production take part in the distribution, that is, mode of production decides the mode of distribution, the distribution according to work is interlinked with the distribution according to factors of production, and the factors of non-labor are also mentioned. Here the author mainly criticizes the lopsided view on Marxism's distribution thoughts, at the same time, seek for some viewpoints from Marxism's thoughts to hold out the idea that factors of production take part in the distribution, which is a new idea brought forth by author. Then, the author sums up the changes and the innovations of our distribution system from the exposition of the CCP's literature (reports of the 13th, 15th, 16th national congress of the CPC and decision of Third Plenary Session of the Forth Central Committee). The changes reflect the evolvement of distribution system from distribution only according to work to several distribution modes coexisted with distribution according to work being principal, thus at last realizing the principle that factors of production, such as labor, capital, technology and management, etc. take part in the distribution according to contribution. Therefore, the process of the innovation of our distribution system is the one in which we gradually confirm that the factors of production take part in the distribution. Last, the chapter covers such main points of Chinese scholars at present as the connotation, the necessity and the base of distribution according to production factors as well the ways and mechanism to get it. In the section, not only does the author summ...
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