The Income Gap Between Urban And Rural Areas Moderation With Its Fiscal And Tax Policy Research

After thirty years of reform and opening up, China’s economy has achieved rapid development and has changed a lot. People’s living standard has got continuous improvement. The income of urban and rural residents has also increased significantly, while the income gap between urban and rural residents have gradually widening. The income gap has been became bigger and bigger, so this problem is increasingly becoming one of China’s current economic and social problems which is need to be resolved. Social harmony is an essential attribute of socialism with Chinese characteristics. The income gap between urban and rural residents is too large, which will take a lot of bad influence, for example, firstly adversely affect social harmony and stability, secondly reduce the enthusiasm of the members when they work, thirdly reduce economic efficiency, and it will be the risk of the development when it want to get a higher level. Fiscal and tax policy which take a means to adjust the distribution of income could make the income gap between urban and rural residents in moderation, and it also could let urban and rural development go to better. A sound fiscal and tax systems can provide a good environment for China’s economic development, and it could also give full play to the ability to mobilize the country’s macro-control, thus contributing to the rapid development of China’s harmony social. Therefore, how to make a modest income gap and find its fiscal policy which should be applied, it will give us important strategic significance and practical significance.First of all, this paper introduces the background and significance of the topic and it give a review of current research scholars, let me fully inspired, then the article describes the research methods and ideas, innovations and inadequate. Secondly, this paper introduced theoretical analysis of modest income gap, including the definition of basic concepts, methods and means to solve it, and the define standards of the moderate income gap between urban and rural areas, it also give a basic means of the income gap between urban and rural moderation in macro level. Thirdly it introduces the status and impact of rural-urban income gap, and it also derived income gap is widening. The income gap between urban and rural areas had not only a positive impact but also a negative impact on China’s general assembly. This paper highlights the negative impact more, and it also studied the financial system to promote rural income gap moderation, then it make a conclusion that if we improve the revenue expenditure and tax revenue,the urban-rural income gap will widen; but, if we improve the level of tax revenues and expenditure, it will narrow the urban-rural income gap. In addition, this paper give a detailed analysis of the causes which in the current income gap between urban and rural, it include history, the urban and rural tax system, dual social security system, binary system of financial investment, lack of financial support for agriculture and so on. Last but not the least, this paper gives some suggestions in financial and tax aspects. Include the following:firstly, construction of public finances, increase the supply of rural finance public goods; secondly, improving rural education; thirdly, improve urban and rural social security system; at last, improve the tax system, moderate the income gap between urban and rural. With the above implementation of fiscal and tax policy proposals, I believe that it will be able to adjust the income gap between urban and rural areas well and achieved certain results. If we try our best, urban and rural residents can enjoy the fruits of labor socialist family.