DISCUSSION THE RELATIONSHIP OF THE FACTORS OF PRODUCTION AND INCOME DISTRIBUTION BETWEEN TAIWAN AND CHINA

Abstract

This study discusses the relationship of the factors of production and income distribution between Taiwan and China. Both of Taiwan and China increasingly tend to privatize on labor, land, and capital. It is much more serious that the factors of production only gather on minority. Then definitely the distribution of output is much more unreasonable. It still exists differences on the unreasonable distribution of labor, land, and capital, due to the different environment of CrossStrait (Taiwan and China) society. Besides, in the tax system of income redistribution, both Taiwan and China have the same situation that people, who have low income, burden with highly real tax; whereas those who have high income burden with low real tax. This situation deepens unreasonable distribution of income. In the issue of promoting reasonable distribution of income, the Cross-Strait policies can be reference, and work hard to create an average and affluent society together. Not only can achieve the ideal socialism (average) but also satisfy the purpose of market economy (affluence).