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The Reform Of Income Distribution Has Shifted To &Nbsp, With Emphasis On Reducing The Wealth Of State Owned Enterprises.

2010/6/12 10:45:00 32

The long delayed reform of income distribution has entered a critical stage again. However, the emphasis of reform is different from that of the previous media. The focus of reform will be cut from the macro level.


This newspaper learned exclusively that there are three sets of reform plans for income distribution, which are provided by the finance and Economic Commission of the National People's Congress, the Central Committee of the League of nationalities and the national development and Reform Commission.

Three sets of people, three sets of options, although the formulation and expression are different, but pointcuts point to the key to solve the problem of unfair distribution of income, the key is to reduce the wealth of government and enterprises gathered in the hands.


Since 2006, the NDRC issued the first draft on the income distribution of residents, it has been over five years ago, but the Central Committee is determined to come up with a formed operational plan in any case.


At present, the three sets of men are in the process of intense investigation. The NPC finance and Economic Commission and the NLD people told reporters that a preliminary plan may be formed in July, and a complete operational plan will be produced in the year.


Three road horses, national survey


At the beginning of May, the special investigation team of the National People's Congress finance and Economic Commission's income distribution reform went to several parts of the country to conduct research. The leaders were the leading figures of the NPC finance and Economic Commission, namely, Wen Shizhen, Wu Xiaoling and Yin Zhongqing, vice chairmen of the Finance and Economic Commission of the NPC.


Before the launch of the survey, the finance and Economic Commission of the National People's Congress held a forum in Beijing to discuss the difficulties and breakthroughs in solving the problem of income distribution.

At the meeting, Hua Jianmin, vice chairman of the Standing Committee of the NPC, personally attended and listened to the views.


The finance and Economic Commission of the NPC has investigated many provinces and cities such as Gansu, Anhui, Jiangxi, Fujian, Sichuan and Guangdong. The specific counties and cities are Tianshui, Fanchang, Jinjiang and Leshan.


The wealth distribution relationship between the government, enterprises and workers is the most concerned issue in the survey of the people's economic and Social Commission of the people's Congress. The investigation team must ask every question: what can the government do in the income distribution? Where does the wealth flow to the enterprise?


Wen Shizhen, vice chairman of the finance and Economic Commission of the National People's Congress, investigated and studied Feng Zhu company in Jinjiang, Fujian. This is a textile enterprise. In the survey, he immediately said, "at present, some industries in China have low income level, unfair distribution and large income gap. The key to solve the problem lies in the development of enterprises.

Only by improving the efficiency of enterprises can we increase the income of workers.


After conducting research and investigation in Fanchang, Anhui agricultural county, Wu Xiaoling said she would gradually increase the proportion of residents' income in the distribution of national income through studying the experience of various places, and increase the proportion of laborers' remuneration in the initial distribution.

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In May 19th, Jiang Shusheng, vice chairman of the Standing Committee of the National People's Congress and chairman of the Central Committee of the Central Committee of the people's Republic of China (NLD), also took part in the research group of the Central Committee of the Democratic League of China, and went to Guangdong to conduct a special investigation on "improving the income distribution mechanism and promoting the harmonious development of the society".

It is said that the survey of the NLD is entrusted by the Central Committee of the Communist Party of China, and the results of the survey will be submitted to the Central Committee.


During its visit to Guangdong, the NLD went to Guangzhou, Qingyuan, Zhaoqing, Yangjiang, Huizhou and Heyuan to carry out research. During the period, 16 seminars were held, 10 grassroots enterprises and institutions were investigated, and 200 questionnaires were distributed and recovered. Six

The NLD divides the research objects into four categories: the government, state-owned enterprises, private enterprises, township and rural areas. "To solve the problem of income distribution, we must first solve the problems of these stakeholders."

Members of the NLD research team.


There are many interesting details in the survey, and some details imply the ultimate goal of the central research.


One detail is the forum held by the League of Guangzhou in Guangdong. After the introduction of Zhu Xiaodan, executive vice governor of Guangdong Province, the first question asked by the chairman of the NLD is: what can the government do to increase the remuneration of the workers in the initial distribution?


Another detail is in Yangjiang, Guangdong, when the local officials stressed that the "big cake can be divided into good cake" statement, the research team immediately said: "it is not appropriate to think so, there is no" good "mechanism, the bigger the harder it is.


In addition, the NLD also conducted a questionnaire survey of three places in Guizhou, Shanghai and Henan. The questionnaire is being recovered, and the Research Report and policy recommendations of the research group are being drafted. Members of the research group said that the final report might be formed in July and reported to the Central Committee.


In addition, the Drafting Committee of the national development and Reform Commission, which is responsible for the reform of income distribution, is soliciting opinions from all sides and revising the income distribution plan.

It is reported that next week, the national development and Reform Commission will hold an expert forum in Beijing to discuss the reform plan of income distribution.

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New programme core


Chen Dongqi, vice president of the Macroeconomic Research Institute of the national development and Reform Commission, found that China's economic growth rate averaged 9.9% over the past 30 years.

The consensus reached at the symposium held by the finance and Economic Commission of the National People's Congress in Beijing is that since 1996, the proportion of laborers' remuneration in national income has decreased year by year, and at present it is about 13%.


Social wealth mainly flows to the government and enterprises.

Participants of the NPC's finance and Economic Commission said, "the proportion of workers' remuneration has decreased in recent years. There are only two directions for social wealth: government and enterprises, especially the central government and state-owned enterprises.

Because the local finance really does not have much money, and the profit level of private enterprises is generally low. "


The survey conducted by the NLD in Guangdong found that the profits of some local private enterprises were only 3%-5%.

Therefore, the people's Republic of China suggested that under such circumstances, the government should help enterprises, reduce business tax and other taxes and levies, and leave more profits to enterprises.


"This is how to solve the problem of income distribution in China."

The NPC finance and economic commission research participant said.

In the draft reform of income distribution drafted by the national development and Reform Commission, it is no longer a separate target for household income, but more inclined to reform the proportion of income distribution between government and enterprises.


Almost all the research teams are concerned about the high profits of the central enterprises and the high income of monopoly industry executives.

Wei Zhong, a researcher at the Institute of economics of the Chinese Academy of Social Sciences, said to the NPC's finance and Economic Commission that it should further raise the proportion of profits from central enterprises.

Gradually realize the distribution pattern of central enterprises' wage income.

Wei Zhong told this reporter that this is not only conducive to reducing the income gap between central enterprises and private enterprises, but also conducive to reducing the income gap between senior managers and ordinary employees in central enterprises.

The NLD also suggested that we should further standardize the income of state-owned enterprises in monopoly industries, especially some non wage income.


Adjusting the proportion of central and local income distribution is also a major consideration in this survey.


According to the survey conducted by the Central Bank of the League of China, China's local fiscal revenue 60%-70% has been classified into the central government. Although the central government is also increasing the pfer payments to the backward areas, the funds used for the pfer of financial payments are still very small.


Therefore, the NPC finance and Economic Commission and the Central Committee of the people's Republic of China suggest that the central government should first benefit the local authorities, promote the reform of the tax sharing system and improve the central and local financial and administrative power.

The central government should allocate more taxes to real estate, value-added tax and consumption tax.


In addition, the central government should also increase the pfer of financial payments. A survey by the NLD suggested that the proportion of pfer payments in the central government should be raised to 40% or even 50% from the current 20%.

The central and local tax distribution should be consistent with the principle of "where to go".


As for how the government and business profits are pferred to employees, the survey by the NLD suggests that the tax threshold should be raised as soon as possible, so as to increase the remuneration income for workers.

The people believe that China is now one of the most heavily taxed countries in the world.

According to the survey, the tax rate of the middle class in China has now accounted for 30% of its normal income.

It is reported that the research group of the NPC finance and Economic Commission is very interested in similar proposals.

In June 6th, he returned to Beijing's Wu Xiaoling, vice chairman of the finance and Economic Commission of the people's Congress of the people's Congress.

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Reform constraints


Since 2006, the NDRC has produced the first draft on the income distribution of residents. It has been five years since then.

The reform of the income distribution system has been mentioned several times. The draft has been revised several times, and the government, academia and even the public have repeatedly argued.


In fact, as early as 2000, Hua Jianmin, Deputy Secretary General of the central financial and economic leading group and director of the office of the office of the central financial and economic leading group, once organized relevant departments to produce a plan on the reform of income distribution, but for various reasons, it failed to finally come out.


Ten years ago, when Hua Jianmin participated in the seminar on the income distribution research team of the National People's Congress in late April, he once again saw some policy suggestions and said, "many problems are similar to those we studied at that time".


Why is the reform of income distribution going to be so difficult? Wei Zhong, a researcher at the Chinese Academy of Social Sciences, said that the reform of income distribution is different from other fields. This is a clear distribution of benefits, and the distribution of benefits is often the most difficult.


The draft reform of income distribution released by the NDRC in 2006 was summed up by the outside world as "high control, expansion and low". At that time, the main starting point was to solve the problem of residents' income. The settlement measures were all considered from the perspective of residents, but the key to regulating income distribution is not here.


Since then, the national development and Reform Commission also organized the five parties of the Ministry of finance, the Ministry of human insurance, the SASAC, the social science academy and the national development and Reform Commission to study and drafted the draft of the income distribution reform.

According to people familiar with the matter, the NDRC has been constrained and hindered by too many interests in the process of revision, and the more controversy and resistance the more substantive issues are touched upon.

On one occasion, the NDRC made it clear that the proportion of profits raised by central enterprises increased to 50%, but in the process of soliciting comments, the SASAC almost broke the scene, causing the version to abort again.


This time, the Central Committee has made further changes in income distribution, both in the starting point and in specific policy recommendations.


The reason for the central government's determination is that the reform of income distribution has already been a topic involving the macro level and social equity of China's economy, and has also become a constraint factor for stimulating domestic demand and economic pformation.


Therefore, the research group of the NPC finance and Economic Commission and the central research group of the Central Committee of the people's Republic of China will be much less restrictive. What they will eventually produce will be much more radical.


At present, the national development and Reform Commission's revenue plan is soliciting opinions from all sides and continues to be revised.

The Research Committee of the finance and Economic Commission of the National People's Congress and the central research group of the Central Committee of the people's Republic of China (NPC) said that the report of the NPC finance and Economic Commission and the central research group of the Democratic League of China will be completed and reported in July.

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