Source: People's Daily - Theory Channel Original draft
Set the theoretical thoughts, gather everyone's words. The "Theoretical Roundtable" column closely follows the theoretical hot spots and pays attention to theoretical dynamics.
The theme of this issue: The tenth meeting of the Central Financial and Economic Commission pointed out that it is necessary to build a basic institutional arrangement for the coordination of primary distribution, redistribution and tertiary distribution, increase the adjustment of taxation, social security, transfer payments and improve accuracy, and form an olive-shaped distribution structure with large middle and small ends. What is a triple allocation? What is the relationship between tertiary distribution and primary distribution and redistribution? What roles do governments, enterprises, and individuals play in the three distributions? This issue of the Theoretical Roundtable focuses on the three distributions and reflects on the great significance of the central government's re-emphasis on this institutional arrangement.
People donate and transfer income entirely voluntarily and to each other, and charity is the main form
Deng Guosheng, vice dean and professor of tsinghua university's School of Co-Management, wrote an article that explored in depth the origin, connotation and characteristics of the concept of "third distribution", as well as its relationship with philanthropy.
He pointed out that the concept of "third distribution" was proposed by the famous economist Li Yining in the 1990s: the income obtained by providing factors of production to the market is called the first distribution; the government redistributes the income obtained from the market with tax policies or poverty alleviation policies, which is the second distribution; and the third distribution refers to people's completely voluntary, mutual donation and transfer of income, such as donation to public welfare, which is neither market distribution nor government distribution , but out of the distribution of moral power. Subsequently, this concept was gradually accepted by the academic community, and the relevant research was increasing, and it was eventually adopted by the documents of the Party Central Committee.
He summarized the connotation and characteristics of the "third distribution" in four aspects: first, the dynamic mechanism of the third distribution is driven by love based on the social mechanism, and charity is a public welfare activity voluntarily carried out by donating property or providing services, which is the main form of the third distribution; second, the goal of the third distribution is to solve social problems and promote the construction of socialist spiritual civilization; third, the main body of the third distribution is social forces, including enterprises, social organizations and individuals, of course. The third distribution and the development of charity are inseparable from the leadership of the party and the government's policy support and supervision and management; fourth, the object of the third distribution includes not only the property donated by social forces, but also the volunteer services provided by social forces, through the dedication of time, skills or professional knowledge, to provide the services needed by vulnerable groups, and enhance the sense of material and spiritual attainment and happiness of vulnerable groups.
He stressed: The development of philanthropy and the third distribution are important means to improve the adjustment of income and wealth in our country and promote the common prosperity of all the people, an important way to build socialist spiritual civilization in our country, and an important supplement to the first and second distributions. Playing the role of philanthropy and the third distribution also helps to maintain the vitality of society and enhance the innovation and competitiveness of the country. To this end, it is also necessary to improve the "Charity Law" as soon as possible, increase policy support, continuously expand the scale of charitable donations in China, and improve the structure of charitable donations.
Transfer the right amount to the "left behind" by the right person at the right time and in the right place
Professor Wang Yongjun, director of the Government Budget Research Center of the Central University of Finance and Economics of the Central Party School, pointed out in an article that due to various reasons, whether among members of society or between various regions, the pattern of income and wealth distribution formed by market distribution is bound to be too large. In principle, the government can correct market distribution through "market-oriented distribution measures" such as the minimum wage law and forcing enterprises to purchase insurance for employees. In practice, such measures are common in all countries, including China. However, even if the perfect market-based distribution measures are insufficient, the role of the government as a "redistributioner" is therefore indispensable and crucial.
The article points out that these "redistributions" that differ from market-based distribution cover three logical levels. The first is tax redistribution through a progressive tax system, which aims to ensure that the overall tax burden is ultimately borne primarily by high-income earners, and that low-income earners have significantly lower tax burdens than high-income earners. This is the first level of the "triple-allocation" system. There are two key features: one is to focus on the redistribution of "monetary income and wealth", and the other is universal and inclusive to all members of society.
The article points out that tax redistribution also has limitations, because the progressive effect of the tax system is difficult to guarantee. There are many reasons, including an inadequate tax system, loopholes in collection and management, and a large space for the rich to evade taxes. Another limitation is the neglect of the equalization of substantive "material living conditions". Basic public services are a key aspect of this. After all, tax redistribution does not guarantee broadly equal access to "basic" public services for low-income groups, including law and justice, education, basic health care, basic public facilities, and basic social security. Anyone who is identified by the universal values of a society as the minimum standard of civilized life of a member of society and is thus treated as the rights and interests of "social persons" is suitable for inclusion in the list of "basic" public services and equalized, and has nothing to do with the economic conditions of the individual and the family. This is the second allocation in "triple allocation".
The article points out that tax redistribution and equalization of basic public services also have limitations, because there is no special consideration for the civilized social life norms of "preferential benefits should be preferential". Due to life, old age, illness and death, natural disasters and other irresistible reasons, there will always be a small number of members in any society who will face the risk of "falling behind" at any time, that is, they will not be able to meet the bottom line standards of civilized life unless they resort to social forces. This requires a precise and flexible transfer payment system, at the right time, in the right place by the right person to transfer the right amount to the "left behind", making it a preferential offerer. This is the third of the three allocations, which compensates for the limitations of the first two allocations: flexibility, pertinence and preferentialness. The three distributions are interlocked, each linked to the goal of common prosperity: tax distribution and transfer payments are designed to promote common prosperity at the level of "income and wealth", equalization of services is aimed at promoting common prosperity at the level of material living conditions; tax distribution and equalization of services are aimed at all members of society, and transfer payments are aimed at a small number of "left behind".
High-income people act in accordance with the moral and ethical systems such as social welfare, social morality, and social harmony under the premise of voluntariness, forming a virtuous circle
The "Economic Daily" Jin Guanping article emphasized that the journey of common prosperity has the logic of getting rich first and getting rich later, and the three distributions are the embodiment and practice of getting rich first and getting rich later, which obviously cannot be misunderstood as "robbing the rich and helping the poor." "Encourage high-income people and enterprises to give more to society", the key word of the tenth meeting of the Central Financial and Economic Committee is encouragement, not coercion, which has clearly stated the attitude. The three distributions are mainly to emphasize the awareness of common prosperity and the values of social justice in the whole society, through this way, high-income people in accordance with the social welfare, social morality, social harmony and other moral and ethical systems under the premise of voluntary action, the formation of a virtuous circle, not only the recipient's sense of gain, happiness increased, but also the donor's sense of achievement, sense of value is also increasing.
The article points out that to achieve common prosperity and the continuous improvement and optimization of the distribution mechanism are major issues that cannot be avoided. To correctly understand this basic institutional arrangement for moving toward common prosperity, we must first correctly judge the existing distribution system. The mode of distribution adopted by a society is determined by the level of development of the productive forces of that society and the corresponding economic system. Since the beginning of reform and opening up, based on the basic national conditions of the primary stage of socialism, we have established a distribution system with distribution according to work as the main body and multiple distribution methods coexisting, and a redistribution adjustment framework with taxation, social security, and transfer payments as the main means has initially taken shape, which has greatly promoted the rapid development of the national economy. At the same time, we must also see that there are still some outstanding problems in the field of income distribution that need to be solved urgently, mainly because the gap between the development of urban and rural areas and the income distribution gap between residents is still large, and the order of income distribution is not standardized, and so on. These problems must be gradually resolved through the promotion of development and the deepening of reform.
The article emphasizes that on the basis of voluntariness, the three distributions are distributed to social resources and social wealth in the form of fundraising, voluntary donations and funding, which can make up for the failure of the "visible hand" and "invisible hand" that may occur in the existing distribution system, which is conducive to coordinating efficiency and fairness, narrowing the income gap, and building a more reasonable wealth distribution pattern. At present, China has built a moderately prosperous society in an all-round way, the cake of social wealth continues to grow, providing an economic foundation for the three distributions, and the supporting system related to the three distributions is also constantly improving.
The "popularization" of the three distributions is more conducive to the formation of a good social atmosphere for healthy development
Zhao Zhong, a researcher at the National Institute of Development and Strategic Studies at Chinese Min University and a professor at the School of Labor and Personnel, said that the three distributions are distributed under the action of moral forces and social customs; in turn, the action of the three distributions will inevitably reshape the moral system and social customs of society. Judging from the situation in many countries and regions, public welfare donors and participants in public welfare activities are not limited to high-income groups, in fact, the number of people participating in public welfare activities in ordinary middle-income groups is far greater than that of high-income groups. The "popularization" of the three distributions is more conducive to forming a good social atmosphere for the healthy development of the three distributions, and can enhance the cohesion, sense of identity and participation of all sectors of society. The three distributions can not only improve the income gap, but also play a role in promoting social fairness and justice, enriching spiritual wealth, and enhancing the people's sense of gain in the spiritual field. Common prosperity is not egalitarianism, let alone "killing the rich to help the poor", the basic principle of the three distributions is social solidarity on the basis of voluntariness, which is the boundary of the three distributions.
He also stressed that unlike primary distribution and redistribution, the three distributions are mainly based on the principle of voluntariness and moral standards, and the distribution of resources and wealth to their affiliates in the form of charity and public welfare such as fundraising, donation, funding, and volunteering. Social organization and social forces are the backbone of the three distributions. With the continuous development of China's social and economic level, the continuous improvement of the people's income level, and the continuous expansion of the middle- and high-income groups, the role of tertiary distribution will become greater and greater. The coordination of primary distribution, redistribution and tertiary distribution can better play the role of the market, government, society and family in income distribution, and form an income distribution system that combines points and surfaces.
(Source: Economic Daily, People's Forum, China Discipline Inspection and Supervision Daily, China Net)