In the first half of this year, China's tax revenues increased 29 percent to 2.49 trillion yuan-- an average of 430 yuan per person if spread out evenly among the 1.3 billion Chinese. Meanwhile, data released last week by the National Bureau of Statistics shows that during the same period, the per capita disposable income of urban residents was 7,052 yuan; a real growth of 14.2 percent, ignoring price changes.

Compared roughly, the figures show that much of China's new wealth is going to government revenues. As a result, the growth of national wealth is greatly exceeding that of the people.

In previous decades, the government focused on accumulating massive financial and material resources in order to accomplish large-scale projects. China has since sustained a number of them while building up an integrated economic system in a short period of time. But the era for this policy is coming to a close.

Guarding the people's livelihood is the nation's most basic task, and wealth accumulated by it should focus on this. Only after the government has abundant revenues can it work in the interests of the people, and provide ample public products and services. But how much was actually spent by the government on these issues? And is it that the government debt in social security and health care only increased?

Although Chinese have enjoyed the fruits of reform and opening up, wealth is still concentrating in national revenue. This is indicative of the government's confidence in its efficiency and ability to optimize distribution.

But Chinese income has not grown as fast as government revenues, which have grown 20 percent in the past five years. And the income distribution gap has widened, leaving many indifferent to China's economic growth, which they feel they cannot relate enough to.

The central government has recently announced that it will take advantage of rapid economic growth to solve the basic problems faced by Chinese and improve their welfare. This is not only the responsibility of the government but also a necessary transformation as our system of national finance becomes one of public finance.

To let everyone share in the benefits of growth, the government should move away from a policy of “wealthy nation, strong people” and towards “wealthy people, strong nation”-- the core of which lies in tax reform.