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    The Reform Of Income Distribution Is Mainly About Letting Profits.

    2010/9/2 17:23:00 48

    Income Distribution Reform

    Recently, reporters learned from the NDRC stakeholders that the revenue distribution reform plan, which has attracted much attention, is expected to come out in the near future.

    It has been revealed that the key to the reform of the income distribution system is to give up profits, including the government's concession to the public, and the profits of enterprises to the employees.


      

    reform

    The focus is on letting profits.


    As a matter of fact, as early as 2004, China issued the "strengthening income".

    distribution

    The relevant draft of the guidance and Implementation Rules for adjustment has not been published.


    In his report on government work this year, Premier Wen Jiabao proposed that efficiency and fairness should be considered in the initial distribution, so that all elements could follow the market principles to gain profits and strengthen the adjustment of unreasonable factors.

    It includes improving the normal wage growth mechanism, accelerating the reform of monopoly industries, and strengthening the regulation of income distribution in monopoly industries.

    The issue of income distribution reform is again on the agenda.


    To this end, since April, the NDRC has held several seminars on income distribution, and officials from the Department of state of the State Council, the Ministry of finance, the Ministry of human protection and the Ministry of civil affairs.

    In the meantime, the employment and income distribution division of the NDRC also went to Zhejiang, Sichuan and other places to conduct research.


    In June 13th, the national development and Reform Commission held a seminar on the reform of income distribution again, and the experts suggested that the proportion of dividends paid by the central enterprises in monopoly industries should be raised according to the principle of the same shares and the same rights, so as to increase the proportion of local retained taxes.

    In fact, letting profits become the core of the reform of distribution system, including giving profits to the people by the government, and giving profits to enterprises by the enterprises.


    Relevant data show that from 1978 to 2006, the average annual income of our residents increased by 6.7%, far behind the growth rate of the same period.


    "The key to adjusting the income distribution structure is two proportions: one is the proportion of labor remuneration in the initial distribution; the two is the proportion of the income distribution of the residents in the national income distribution.

    The initial allocation policy is the focus of this reform.

    The guidance will raise the proportion of labor remuneration in the initial distribution, and change the situation of excessive capital gains and less labor income in the initial distribution.

    Yang Yiyong, director of the Social Development Research Institute of the national development and Reform Commission, told reporters that the adjustment of income distribution is two sides. The high level should be adjusted to the low level and low to the high level, so as to further narrow the gap between the rich and the poor.


    "The key to the reform of the income distribution system is to give up profits."

    People close to the NDRC told our reporter, including the government's concession to the public and the profits of enterprises to employees.

    The government pointed out that the government should make profits to the public, including raising the minimum wage standard, increasing the urbanization process, and improving the expenditure of science, education, culture and health, and promoting the implementation of "non-public 36".

    {page_break}


    The interests of all parties need to be coordinated.


    "Income distribution involves the adjustment of all aspects of interests, how to balance social equity and justice? How to combine with expanding domestic demand and changing the mode of economic development? This is not a simple problem."

    The national development and Reform Commission said.


    The government is in the core position in the complicated interest relations entanglement of income distribution reform.

    The complexity of the problem lies in the fact that the government itself is also entangled with various interests.

    Wang Xiaolu, deputy director of the National Economic Research Institute of the China reform foundation, believes that there is considerable imbalance in the allocation of factors at the policy level.

    Taking local governments as an example, its goal is to stimulate GDP growth, so it is keen to encourage capital intensive investment, provide preferential policies for large enterprises, and constantly tilt economic resources to the strong. Relatively speaking, it does not pay enough attention to labor-intensive small enterprises, and the latter is precisely the main force to solve employment.


    In fact, it is also a problem for enterprises to benefit people.

    Chen Xinnian, director of the Consumer Research Office of the national development and Reform Commission, pointed out that from the point of letting the monopolized enterprises pay dividends, there will be great resistance, because the interests of the monopolized industries will be damaged, and some compensation mechanisms such as taxes must be needed. For non-state-owned enterprises, it will be even more difficult for them to help workers and increase their income.


    "We can encourage enterprises through fiscal and tax means or supervise them through legislation or administrative means."

    Chen Xinnian suggested.


    increase

    personal income tax

    The starting point is getting higher.


    Su Hainan, director of the Institute of labor and wages of the Ministry of human resources and social security, said that China has basically met the requirements of the "national income doubling plan" that "the average annual wage increase is more than 15%, and it can be doubled in five years".


    Obviously, wage increase is an important means of doubling the national income. In fact, the current wage increase has become the trend of the times. Since the beginning of this year, the minimum wage standard has risen in all parts of the country.

    At present, the minimum monthly wage in Shanghai is 1120 yuan, the highest in the country. From April 1st onwards, Zhejiang will adjust the minimum monthly wage standard in the whole province, the minimum monthly wage standard in the highest level will be raised to 1100 yuan, the minimum wage standard in Guangzhou will be raised to 1100 yuan, and the new standard will be formally implemented from May 1st.

    Since July, the minimum wage in Shenzhen has been raised to 1100 yuan.


    On the other hand, the call for raising the tax threshold has also been very high recently.

    In this regard, Guangdong is expected to take the lead in breaking the ice. In response to Huang Xiqin, a member of the Guangdong provincial CPPCC National Committee, on the proposal to raise the threshold of Guangdong's personal tax, the Guangdong provincial land tax bureau recently replied that it would reflect to the central government that it is recommended to establish a floating mechanism for the deduction of the personal income tax payroll deduction standard and the regional price level and inflation coefficient.

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