China increased polarization between rich and poor

With China's sustained and rapid economic development, the income level of Chinese residents has also been a rapid growth. However, the Ministry of Finance Research Institute Research Group recently released a report that in normal revenue growth behind, there are still some can not be taken lightly.

1, the income distribution gap between the growing divide between rich and poor increased. Mainly as follows: First, the Gini coefficient in order to reflect the overall income gap widening year by year, more than the internationally recognized subject line. 0.282,1998 for the years 1991 to 0.456,1999 was 0.457,2000 years 0.458,10 for the year increased by 1.62 times. Second, the income gap between urban and rural residents continue to grow. In 1990 the income of urban and rural residents than for 1:2.2,1995 was 1:2.71,2000 years 1:2.79,2001 for the year expanded to 1:2.9. Third, the gap between regions. In 2000, per capita income is in the eastern part of the western region of 2.26 times that of the highest and the lowest in the province between the province more than 3 times. Fourth, trade between the further widening of income gaps. Mid-1980s, the income gap between the industry began to show, by the mid-90's highest and lowest per capita income sectors of the industry than for years 2.23:1,2000 rose to 2.63:1. Fifth, the different nature of the economic unit of the union income gap has widened. State-owned economic units in the nature of wages and collective nature of the economic unit wage workers, in 1985 the average wage gap for years 1.25:1,2001 extended to 1.63:1, and other economic units in the nature of wages and collective nature of the economic units compared to the wages of workers , In 1985 the gap for years 1.49:1,2001 to the development of 1.77:1. Six cities and towns are within all sectors of the income gap between the apparent speed up the pace of expansion. In the past two years in particular, high-income households grew substantially more than the revenue growth of low-income households, a quarter of the 2002 statistics show that 20% of the income of high-income earners accounted for 46.2 percent of total revenue, 20% of low-income The revenue accounted for 6% of total revenue, the income gap between high and low as 7.66 times. 2, property growing concentration of residents of family property, the difference is increasing.

The latest survey shows that 10% of the well-off urban families accounted for 45% of total assets. 10% of the lowest-income families of its total assets accounted for 1.4 percent of the residents of the property, while 80% of the share of family property, 53.6 percent of the total. At the same time, financial assets of urban residents appeared to focus on high-income families trend, the average financial assets of up to 20% of urban households have family financial assets of the total value of the current ratio of about 66.4 percent, the lowest in 20% of the family , The average financial assets owned by residents of the financial assets of only 1.3 percent of the total.

China's urban property of the family's Gini coefficient of 0.51, much higher than the income of urban residents of the Gini coefficient of 0.32.

3, the system "egalitarian distribution of" outside the system and the "income gap is too large," the two extremes co-exist. "Egalitarianism" has not completely eradicated, mainly in salaries (excluding wages, income) distribution, the majority state-owned enterprises, as well as organs, institutions, mass organizations within the wage gap between low income distribution.

At the same time, wages in income distribution exists, "the income distribution gap is too large". Wage income, the income of monopolistic and illegal income is caused by abnormal distribution of income gap is too large a major source. 4, irregular distribution of income.

First, the irregular payment of wages, are to varying degrees all over the country there is the phenomenon of wages in arrears; Second, the extraction of non-standard wages, linked to the implementation of corporate ergonomics programs, outside the base wage extract more common phenomenon; Third, some enterprises to establish supplementary old-age insurance for more than 4% of the total wage standards to enter in the guise of raising revenue; Fourth, business management, "post consumer" is too arbitrary, there is a lack of a reasonable degree of restraint. 5, the overall revenue structure is still irrational. Mainly as follows: First, the unreasonable structure of wage income, low-wage system, labor system, high-reward, the many, not included in wages; Second, according to a variety of factors do not share the revenue with the central authorities on "and allow the To encourage capital, technology, management, and other elements involved in the distribution of income, "there are still gaps. China's urban residents, according to a variety of elements of the pattern of distribution is far from the real adjustment in place, and other elements involved in the allocation of further increase in the proportion.

According to the report, to establish a number of personal disposable income currency regulation and taxation policies: First, financial departments at all levels between the reasonable regulation of income distribution division of powers. Regulate the distribution of income related to financial departments at all levels, so first of all a reasonable division of powers. China is due to the extreme imbalance in the regional economy, income distribution can not adjust the relative concentration of powers to determine the relative uniform nationwide standards for the regulation is not a realistic option. To this end, the regulation of income distribution, the basic territorial residents say should be divided. However, taking into account the revenue at all levels of ability to draw on the resources and institutional differences that can regulate the distribution of income and financial resources to support the transfer payments into the system. Furthermore, higher levels of financial transfer payments from a special perspective to the lower levels of financial allocation of the funds to make up for lower financial income distribution, inadequate financial regulation. From the reality of our situation, adjust the distribution of income in order to achieve the target, the central government for financial transfers to the provincial anti-poverty funds can be designated areas and categories. Provincial finance may be eligible to lower financial income to determine benefits regulation. This should determine the amount of subsidies to various parts of income, prices and conditions of the population as the basis, without having to seek the unity of the grant criteria.

Second, establish systems to monitor people's income. The establishment of people's income on the one hand, when the monitoring system can make use of tax information, on the other hand, may make use of the social security system of relevant information. If the average social wage, the amount of personal accounts to co-ordinate the amount of accounts and so on. This information is calculated through the absolute amount of revenue. At the same time, the price index should also be used, the wage index, cost index, such as in-kind income to monitor the relative changes in the state. The establishment of a relatively scientific and comprehensive system to monitor people's income is that we have an important role in regulating precise delineation of the object on the basis of information provided.

Third, adjusting income distribution reform of the way capital expenditures. China's income distribution of the financial expenditure of funds in cash-based benefits, this model in the reality revealed in a number of obvious problems. The outstanding performance of the funds are used to a certain extent, can not fully achieve the desired results. For example, low-income part of the payment for the money to be spent on non-essential spending on daily necessities. To this end, China's financial departments at all levels can be set up for low-income groups, the basic orientation of the consumer subsidy system. Such as invoices or receipts for reimbursement with fixed tuition and fees for compulsory education, utilities, medical expenses, food expenses, and so on. Areas where conditions permit may be appropriate to relax the scope of the grant. The right to determine the criteria fixed by the municipal finance master, the provincial financial regulation can be as appropriate.

Fourth, the tax-related adjustments. Personal income tax reform of the tax system, moderate to raise the threshold at the same time, reduce the levels, and to expand the class from the lower tax rate, in particular the 3,000? 5,000 range that should be taken to the income of the low tax policy, because this is a revenue range of middle-income sectors of the limits of income, high tax rates will curb the expansion of China's consumption, which in turn weaken economic growth. In the real estate tax, the property could be considered in the classification on the basis of the high-end private housing into the tax base, from a low tax rate, and strict collection and management. Of course, that in order to further standardize the real estate transaction, the removal of unreasonable charges based.

Fifth, in the central and provincial finance the establishment of low-income groups, children in higher education grants. For low-income groups, children, access to higher education is the ability to convert income to achieve the basic conditions. To this end, the central and provincial levels, as well as the financial conditions of municipal finance can be part of the approved expenditure on education in low-income groups, children, higher education grants. The funds available through the education sector in accordance with certain principles of free grants to meet specific conditions have been admitted to the University of low-income groups of children. The central government of the special funds may be directed to the western regions, economically developed provinces to be more of such funds to the province's economy is relatively backward regions.