The State Council issued a document to promote the reform of income distribution system, and seven groups welcomed the incentive policy

　　The State Council recently issued "Implementation Opinions on Stimulating Vitality of Key Groups to Drive Income Increase of Urban and Rural Residents" (hereinafter referred to as "Opinions"). The "Opinions" are aimed at seven groups with great income-increasing potential and strong driving ability, such as skilled talents, new professional farmers, scientific researchers, small and micro entrepreneurs, enterprise managers, grassroots cadres and groups with working ability, and propose to deepen the reform of the income distribution system, adjust the income distribution structure in development, and introduce differentiated income distribution incentive policies.

　　According to the Opinions, by 2020, the scale of urban employment will be gradually expanded, the labor productivity will be continuously improved, and the quality of employment will be steadily improved; The per capita income of urban and rural residents doubled compared with 2010; The macro-income distribution pattern continues to be optimized, and the proportion of per capita disposable income’s gross domestic product (GDP) continues to increase; The income gap among residents has continued to narrow, and the proportion of middle-income people has increased. Under the current standards, all rural poor people have been lifted out of poverty, and the pattern of joint construction and sharing has taken shape.

　　In order to ensure the implementation of the seven groups’ incentive plan, the Opinions put forward six supporting actions, including property income to open up sources and clear obstacles. According to the requirements, we should accelerate the development of direct financing and promote the stable and healthy development of multi-level capital markets under the premise of controllable risks in the future. Strengthen the innovation of financial products and instruments, improve financial services, and provide residents with diversified wealth management products to meet the growing wealth management needs of residents. In addition, it is necessary to balance the tax burden of labor income and capital income, strive to promote fair opportunities, and encourage more groups to get rich through hard work and talent. Improve the tax collection and management mechanism of capital income and property income.

　　Wu Qi, a researcher at China Minsheng Bank Research Institute, told the Economic Information Daily that comprehensively deepening the reform of the income distribution system is an inevitable requirement and an important support for building a well-off society in an all-round way and crossing the middle-income trap during the 13th Five-Year Plan period. In 2013, "Several Opinions on Deepening the Reform of Income Distribution System" issued by the State Council clearly pointed out that to gradually form an "olive" distribution structure, the important goal is the continuous expansion of middle-income groups, and the core lies in promoting the reform of income distribution system, continuously expanding middle-income groups and continuously narrowing the income gap. Among them, seven groups, such as skilled personnel, new professional farmers and scientific and technological personnel, are the main target groups. On the one hand, the low-income groups in the seven groups should be promoted to enter the middle-income group by improving the income distribution incentive policy, on the other hand, the middle-income groups in the seven groups should be prevented from slipping to the low-income group through the tax collection and management mechanism of capital income and property income.