Taxation Countermeasures Narrow The Income Gap In China

With the economy development of our country, and the deepening of the reform of the marketization and the living standard of all orders of society is gradually improved. But, when seeking the efficiency of market economy, the income gap rapidly widening in China. Accordingly, the research in current problem of the income gap, have very important theory and practical significances.This paper discusses the concept and measure methods of the income gap as the base points, researches the income gap in urban and rural residents, the income gap between urban residents and rural residents,regional income gap between rich and poor and the the social psychology of the gap respectively. All of these angles will analyze the current status of China's income gap.Also analyses the positive role and negative impact in the new era.This paper explained the reasons of China's widening income gap from three dimensions,the difference natural resource endowment, the market economic regulation system itself and the governments' ineffective redistribution policy adjustment.Based on the reasons for China's widening income gap, learned at home and abroad research results to reduce the disparity, under the analysis of the current fiscal situation and learning from foreign experience,to run the policy emphasis on the fiscal revenue and expenditure policies. Narrowing the income gap response through Revenue in fiscal policy, can improve the personal income tax system proposed by the classification of income tax to the income tax system gradually transformed, simplified tax bracket class times, and enhance personal income tax to adjust income distribution; use of property taxes reduce the income gap, through transfer of property behavior inheritance tax and gift tax; by adjusting the scope of consumption tax and consumption tax revenue part to play strong for the high consumer regulation to ease the gap. In the fiscal expenditure policy, I believe that the urgent need is to adjust and optimize the transfer of fiscal expenditure structure, the expansion of general transfer payments to the backward areas of special expenditures and reducing the gap between regional economic development levels.Adjust the structure of the central government education expenditure, the central financial education expenditure should focus on the countryside and turn to the poor areas. Improve the social security system, do the minimal needs of urban low-income work, innovation the social security system including migrant workers, and gradually taking the farmers into the social security system. Finally analyses the expected results of fiscal policy to reduce the disparity.