Income needs to grow in step with economic growth

By Guo Wanda
0 Comment(s)Print E-mail, March 10, 2016
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Editor's Note: "Reform is the only way to promote social fairness and justice in China," said Guo Wanda, executive deputy director of the China Development Institute, a Shenzhen-based think tank established in 1989 in Guangdong Province. The following represent his perspective on this topic in his recent interview with

Fairness is the foundation for the rationality of income distribution. There are many factors influencing fairness and rationality.

Generally speaking, to solve the distribution problem, the government should first of all have a reasonable distribution proportion of remuneration factors, handle relations among individual citizens, enterprises and the government, and realize a reasonable redistribution of national wealth through taxation and a well-designed social security net.

The people's immediate feelings about the wealth distribution issues are based on their feelings toward the changes with their income. The government should build a citizen income growth mechanism that gives hope to all citizens about their future, and establishes a normal collective wage negotiation system.

The Chinese government should also reform personal income tax, because this tax is directly related to people's interests. The personal income tax must consider the taxpayer family's financial situation. China also needs to collect real property tax and even inheritance tax and tax on high-value consumptions in the future, so as to bridge the income gap.

The Chinese government should equalize public services, guarantee the income of the lower-income people, and ensure all citizens' basic life needs be satisfied, and they should have accesses to medical care, education and housing. The migrant workers should enjoy urban resident's welfare, and the poverty-stricken population needs to have the means to receive education, training and necessary support to pursue better life.

Anti-monopoly reform is quite necessary in some industries in China, so as to bring down unreasonable income of some industries. The state-owned enterprises should hand in more profits to pay for public needs. China's fight against corruption is also an effective way to form an adjustment mechanism for national wealth by punishing illegal income, and to let the people better enjoy the benefits of economic growth. The growth of income gives people a strong sense of self fulfillment.

Reform in relevant fields is the only way to make people's income grow in step with economic growth, and promote social fairness and justice in today's China.

The author is the deputy director of the China Development Institute.

The article was first published in Chinese and translated by Jason Lee.

Opinion articles reflect the views of their authors, not necessarily those of

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