To initiate the overdue income distribution reform, the central government should first reform its house purchasing subsidy system, said an article in Southern Metropolis Daily (excerpts below).

According to final government expenditures in 2012, a large share went toward housing subsidies.

According to the Ministry of Finance, subsidies are provided to employees who cannot afford housing on their own.

The subsidy was launched in 1998 when the government ended its welfare housing system.

However, not every State-owned enterprise offers the bonus.

Most build housing for their employees, who can buy the houses at much cheaper prices, while still receiving the subsidy hand-out.

The higher the civil servant’s rank, the larger subsidy he or she can get.

However, many employees take advantage of this system.

Some turn around and sell these houses and make hundreds of thousands of yuan.

Meanwhile, there are some low-ranking employees who cannot afford to buy a house that have not even heard of the subsidy.

It is unfair that most taxpayers spend a lifetime paying their mortgage while civil servants are becoming millionaires overnight.

The central government has vowed to make national wealth distribution more fair. So, it should start with subsidy reform.