Research Of Fiscal And Taxation Policies Of Acrossing "Middle Income Trap" Of China

Per capita GDP of China have exceeded 9,000 dollars in 2017,which presented a crucial stage of transition from upper-middle-income to high-income countries of China.As the problems of the slowly macroeconomic growth and the income distribution gaps are still exists,it's still necessary to the possible risks of "middle income trap" from theory and practice,and explore the measures to prevent it from all aspects.This paper holds that increasing the efficiency of market and government,expanding economic aggregates,and the fair distribution of "cakes" are fundamental prerequisites for China to across the "middle income trap",while dealing with the problem of equitable distribution of income is a guarantee to across the "middle income trap".Both can not be neglected.As an important regulatory measure,there is great potential of improving efficiency and handling fairness by using fiscal and taxation policies.Based on the perspective of income distribution and the actual situation in China,this paper draws experiences and lessons from the other representative countries,and puts forward some feasible fiscal and taxation policies to successfully across the "middle-income trap" of China.The specific contents as follows:Part 1: Introduction.Explain the background and significance of the topic,research methods,innovations and deficiencies of this paper.Part 2: Literature review and related theoretical analysis.First,the relevant literature at home and abroad was combed from three aspects: the concept of "middle income trap",the relationship between income distribution and "middle income trap",and related fiscal and taxation policies that across the "middle income trap".Then analyzes the transmission mechanism between income distribution and "middle income trap" from the aspects of motivation and resistance.Finally,it elaborates the basic theory applied in the process of writing and analysis.Part 3: The risk of analysis of acrossing "middle income trap" of China.Based on the actual situation of our country,this paper analyzes three major types of risks of acrossing "middle income trap" of China.First,it discusses the risks of the current slowdown in economic(the total amount of distribution)growth from the perspective of economic growth momentum,reform dividend,and upgrading of industrial structure.Second,this paper analyzes the risk of unbalanced income distribution from three aspects: distribution system,distribution structure,and income gap.Third,it analyzes the risk of inadequate adjustment of fiscal and taxation policies to the income distribution from the perspectives of fiscal expenditure responsibilities,fiscal expenditure structure,tax structure,and macro-tax burden.Part 4: The empirical analysis of the regulatory effect of fiscal and taxation policies on income distribution.In terms of variables,a series of fiscal policy variables are selected as explanatory variables of the income distribution effect,and their impact mechanisms on the effect of income distribution are briefly analyzed.Based on the provincial panel data,this paper established the urban residents' internal income gap model and the urban-rural income gap model.The empirical results concluded that: local governments pay less attention to income distribution and the marginal tax burden of low-income groups are much higher than that of high-income groups.the increasing expenditure of public services narrows the income gap,and direct taxation has a strong regulatory effect on the income gap.Part 5: Foreign experiences and lessons from the "middle income trap".The analysis of the development process and related economic and social issues of two types of countries which into and across the "middle income trap" from abroad have drawn inspirations: steady economic growth is the source of the "middle income trap";the improvement of economic development quality is the basis for moving toward high-income countries;solving the problem of income distribution has become the key to across the "middle income trap";and the solution to the problem of income distribution must give full play to the regulatory effects of fiscal and taxation policies.Part 6: Fiscal and taxation policy recommendations of acrossing "middle income trap" of China.First,this paper elaborates the fiscal and taxation policies should follow the principles of fairness and efficiency during acrossing "middle income trap".The put forward specific fiscal and taxation policies from three major aspects of improving market efficiency,government efficiency,and promoting fair distribution.