Analysis Of The Causes Of China's Large Income Gap And Research On The Deepening Reform Of The Income Distribution System

Though 30 years of development after the reform and opening up, China's economic strength has markedly increased,but not all people are reasonably enough to share the results of national development. The widening income gap among regions, between urban and rural areas,among sectors,and among groups has exceeded the limits of tolerance, which has a very negative impact on the sustainable development of China's economic, political stability and social harmony. The causes include both historical factors such as the planned economy,urban and rural binary Development since the founding of Republic of China,and the distribution of factors of production under the market economy. But the major reason is that transition system is imperfect. Specifically,the reasons include the following: the market economy system is imperfect,leading to power into distributive elements, and then the intervention of power into distribution leads to a lot of gray income; progressive model of economic reform led to the development of different starting points between East and West,leading to differences between east and west; the urban and rural binary economic structure limits the development of rural areas,leading to the formation of urban-rural gap; distribution system is imperfect,so that profits eroded wages,high capital gains and labor income is low; the weakness of social security or even the reverse distribution of income adjustment makes income inequality more and more great.In light of the problem of the large income gap,the paper proposes the following measures:First,it is necessary to place the reform of income distribution system and narrowing the income gap to a high position of a harmonious socialist society in the political perspective, carry out a fundamental change,use the multi-pronged approach, repose the initial distribution,re-distribution and the third time allocation to establish a clear and fair income distribution order.Second,improve the market mechanism to ensure equitable initial distribution. To begin with,create equal participation of all production factors in market competition environment. Then,raise the share of labor compensation and change the situation of corporate wealth preferring to senior management and capital owners,including the following responses: establish the salary growth mechanism for enterprise employees and payment guarantee mechanisms; tighten state regulation and guidance of wages paid by enterprises,give the necessary management and control on the monopoly industries and the wage income distribution in companies,So as to maintain the gap between it and average annual income of workers within a certain limit; fully implement the labor contract system,the mechanisms of interests coordination and the mechanism of collective wage bargaining,to resolve the problem of a system of dialogue labor and labor benefit system; to raise the minimum wage and social security standards to improve urban and rural incomes,especially in low-income level. Finally,promote the government reform,and establishing , "small government" model adapting to a market economy and service-oriented government.Third,the Government pay more attention when the fair redistribution of income. To begin with, increase the tax on the income distribution of regulation: improve the personal income tax system; reach sources of tax revenue,introduce of property tax, social security tax,inheritance tax,gift tax and luxury tax according to economic development and consumption of the actual situation of the so that high-income the income and wealth redistribution really gets the necessary adjustment. Then,make the social security system play the role of "reveal all the details" on the income. And then,increase support in policy and funding aspects to rural central and western regional. Finally,actively promote the fair in aspect of education.Fourth,improve the income distribution structure and gradually form a pattern of a majority middle-income 'olive' distribution.Fifth,standardize income distribution. Including: rectify market economic order, improve market supervision system,and combat illegal income,to form an opening, transparent,fair and reasonable income distribution order; regulate the government distribution,speed up administrative reform; to strengthen monitoring and tax collection sources.Sixth, promoting socialist morality, and promote the development of charity. Include: elimination of social evils and promote fostering the culture of philanthropy; improve the legal system regulate charities; encourage social organizations and individuals to take part in charitable activities and promote the development of non-governmental charitable organizations; enhance the credibility of charitable organizations.To conclude,the government should ensure the second distribution more equitable through taxes,social security,policy and funding support. Finally,complement and regulate income distribution through improving the distribution structure,standardize income distribution and developing social charity. Reform of income distribution to narrow the income gap is a multifaceted a comprehensive reform,and a more comprehensive and complex process,not only involving market economic system and reform and improvement of the system of government,but also the financial and taxation system,social security system,charity and relief system,and many other comprehensive reform,so we must use the harmonious development of society's strategic vision to look at and respond to the reform of income distribution. Income distribution reform involves the interests of many people,so this task can not be done overnight. However,the reform of income distribution and narrowing the income gap is related to China's economic transformation and upgrade the overall harmonious development of society. What's more,it is the touchstone of torture for government of conscience,so requiring great wisdom and great strategy,even sufficient determination and stamina to break the reform problem.