Core Viewpoint - The article emphasizes the importance of income distribution reform in enhancing residents' income and consumption, which is crucial for economic growth and achieving common prosperity in China [2][3]. Group 1: Policy Evolution - The shift from a focus on low- and middle-income groups to a comprehensive urban and rural resident income increase plan indicates a significant upgrade in policy approach, moving from principles to actionable plans [3]. - The new policy aims to cover all urban and rural residents, reflecting a broader scope compared to previous measures that primarily targeted low- and middle-income groups [3]. Group 2: Structural Issues in Income Distribution - The current income distribution structure is a significant constraint on consumption growth, with labor compensation and residents' income as a percentage of GDP being lower than in most developed economies [4]. - The urban-rural income disparity remains substantial, with a ratio of 2.34:1, indicating persistent inequality that affects overall consumption patterns [4]. Group 3: Economic Development and Consumption - A well-structured income distribution system is essential for forming a consumption-driven development model, which is critical for China's modernization efforts [5]. - The low proportion of residents' income in national income and the large income gap among different groups hinder the expansion of consumer spending [5]. Group 4: Recommendations for Income Improvement - Increasing labor income through better wage growth mechanisms and enhancing market vitality are essential for improving income levels [7]. - The government should also focus on stabilizing asset prices and improving social security measures to support low-income groups [7]. Group 5: Redistribution Mechanisms - Strengthening redistribution efforts is crucial, as current measures are less effective compared to major economies, impacting the government's ability to adjust income disparities [8]. - Optimizing tax structures and enhancing social security contributions are recommended to improve the effectiveness of income redistribution [8]. Group 6: Comprehensive Policy Framework - A multi-faceted approach involving initial distribution, redistribution, and third distribution (charitable contributions) is necessary to effectively address income inequality [9][12]. - Policies should focus on improving employment, tax systems, and social welfare to create a more equitable income distribution landscape [9][12].