TITLE:
China’s Income Distribution System Reform and Income Growth Strategy
AUTHORS:
Jiancheng Liu
KEYWORDS:
Income Distribution Gap, Income Distribution System Reform, Currency Reform, Income Growth Strategy
JOURNAL NAME:
Open Access Library Journal,
Vol.3 No.5,
May
18,
2016
ABSTRACT: The reform of the income distribution system is an important part of the
economic system reform, is an important reflection of economic development and
social progress, and is an important guarantee for building a harmonious
socialist society. The income distribution gap of our country is mainly
reflected in the large income gap between urban and rural areas, the large regional
income gap, the large income gap between different industries, and the large
internal income gap within enterprise, which has directly impacted on the
building progress of a well-off society. We must adhere to the principle of
income distribution in socialist society: “from each according to his ability, to
each according to his work”, and increasing the proportion of labor-factor
income in the total income year by year, until exceeding the levels of the
developed capitalist countries. In addition to salary, the human resources also
participate in the distribution of the enterprise’s profit in the form of
capital. The risk gain obtained from capital is divided into three parts among
enterprise, bank and depositor in a certain proportion. The quality level of
the most basic product is proportional to the value of the minimum unit of currency.
To reform the income distribution system, the country can set up 7 job
positions, with each position divided into 7 levels; therefore, the income can
be distributed according to the distribution coefficient table, and has an
annual increment at the rate of 10%.