Jia Kang: Policy Suggestions on Income Distribution Reform

17:35, March 1, 2013    Author: Jia Kang    ( zero ) +1

Article/Jia Kang, a columnist of Sina Finance [Weibo]

Accompanied by China“ gold One of the prominent problems in the "prominent contradictions" of development is income distribution. The specific performance is that the income gap is too large and should be narrowed, the overall pattern is still "pyramid" and needs to be changed to "olive", and the disorder and injustice of income distribution order, especially the dissatisfaction of the people, must be overcome.

Comrade Xiaoping attached great importance to income distribution in his later years. The Party Central Committee and the State Council have put forward a series of guiding principles for improving and optimizing income distribution in recent years. Not long ago, the State Council approved and forwarded the Several Opinions on Deepening the Reform of the Income Distribution System of three ministries and commissions. In accordance with the spirit of the 18th National Congress of the Communist Party of China, during the term of office of the new government and for a longer period of time, we should focus on promoting the reform and policy optimization of income distribution, and hereby put forward the following suggestions:

1、 Pay close attention to the research and formulation of the relevant plans and implementation rules after the approval of the "Several Opinions" on income distribution of the three ministries and commissions. In the process, it is necessary to further listen to the opinions and suggestions of all parties, organize and guide the necessary thematic discussions, and encourage the argument and in-depth analysis of views in the discussions to serve scientific decision-making.

2、 In the field of primary distribution, the space for the government is mainly to cultivate and improve the market resources and factor allocation mechanism, maintain the rules and environment of fair competition, reasonably adjust the minimum wage standards in various regions, and properly guide the collective bargaining on wage distribution between enterprises' labor and management. On this basis, the main space for the government to optimize China's income distribution is the field of redistribution. Strengthening and optimizing redistribution adjustment should be included as a key task in the overall work deployment of the new government and the design of the overall supporting plan for reform.

3、 Pay close attention to the implementation of redistribution tax: 1. Accelerate the establishment of a comprehensive and classified individual tax system, improve the collection, management and punishment measures of individual tax for high-income people, include all incomes in the collection scope, and establish and improve the two-way declaration system of individual income (that is, legal entities as withholding agents and individuals as taxpayers), As well as the national unified taxpayer identification number system (it can be considered to be the same as the resident ID card number and social security number, that is, No. 1 has multiple functions), so as to facilitate full collection of receivables and reduce tax costs. 2. Reform and improve the real estate tax. We will improve the property ownership and transaction tax system, gradually expand the scope of the pilot reform of individual housing property tax, refine the differentiated tax policy for housing transactions, and strengthen the tax collection and management of stock housing transactions. 3. Research on levying inheritance tax at an appropriate time.

In addition, we should also expand the scope of resource tax collection and raise the level of resource tax burden (this will help to form a long-term mechanism to promote energy conservation, consumption reduction and low-carbon development by economic means, and also indirectly echo the optimization of relevant income distribution); Reasonably adjust the tax items and tax rates of some consumption taxes, and include some high-end entertainment consumption and high-end luxury consumer goods in the collection scope (this will help optimize the economic means to guide the consumption structure of residents, and also indirectly adjust and optimize the related income redistribution.).

4、 Pay close attention to the implementation of social security for redistribution: 1. At the end of the "12th Five Year Plan" period, realize the national planning of basic pension. The pool of "mutual aid" function of basic pension funds will be upgraded to the whole social level that matches the unified market, and the barriers to labor mobility that are difficult to eliminate in low-level overall planning will be eliminated, so as to stimulate the vitality of human capital at the micro level and strengthen the capital payment capacity of the entire basic pension system. 2. Establish a pension security benefit determination mechanism and a normal adjustment mechanism for all types of personnel. 3. Develop enterprise annuity and occupational annuity, and play a complementary role in commercial insurance. 4. Accelerate the improvement of the universal medical insurance system. 5. Increase the supply scale of affordable housing and optimize the supply mechanism.

5、 In terms of redistribution transfer payments, further increase financial support to the central and western regions, especially the old revolutionary base areas, ethnic minority areas, border areas and poor areas; We will increase spending on education, employment, poverty alleviation and development, strengthen relief and assistance to people in need, and vigorously develop social charities. The application of transfer payment needs to be supported by more funds raised on the basis of economic development, and also needs to reduce administrative costs and improve the use performance of expenditure funds in mechanism innovation and strengthening management.

6、 Promote the pilot system of official property reporting and publicity that has been explored at the local government level in the Yangtze River Delta, the Pearl River Delta and some inland areas. The preparation conditions are to implement the property publicity system for newly promoted cadres in order to promote the rectification of officials and the construction of a clean and honest government (if the property publicity system for newly promoted cadres is fully implemented, within 20 years, the incumbent officials will become almost 100% of those who take leadership positions after the property publicity).

7、 In the reform, we should eliminate the transitional monopoly factors in some industries, improve the transparency of the relevant income distribution system rules, strengthen the upper limit constraint and rule management on the compensation and job consumption of state-owned enterprise executives not generated by the market competitive mechanism, and emphasize the standardization, transparency and appropriate improvement of standards for the treatment guarantee of "labor dispatch workers".

8、 Under the overall vision of income distribution and property allocation, strengthen the guidance and management of non wage income and property income, crack down on corruption, power and money trading, bribery, drug smuggling, tax evasion and other related black income, clean up, rectify and standardize all kinds of "gray income", of which the reasonable and need to be corrected should be sunny; Those that are unreasonable should be banned.

(The author of this article introduces: Director of the Institute of Financial Science, Ministry of Finance, researcher, doctoral supervisor.)

(The "2014 Sina Jinqilin Forum" hosted by Sina Finance is scheduled to be held at JW Marriott Hotel in Beijing on November 22, 2014. The theme of this forum is reform and decision-making. It focuses on the transformation and challenges of China's economy in the deep reform period. Entrance to Registration 2015, the next step of decision-making, waiting for you!)

Article keywords: Initial distribution Tax income distribution

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