Resources Allocation Law on Optimal Economic Growth Path and Its Application in Tax Policy

The article discusses the application scope of the resources allocation law in the following: (a) return on work is used in consumption and (b) return on fixed assets is used in investment. It indicates that the resources allocation law holds water when the planned object on the optimal economic growth path meets certain condition, and also discusses the design about tax policy making use of resources allocation law. The article constructs a one-sector model and a multi-sector nonlinear input-output model, respectively, and puts forward the way to calculate the proportion of total tax income to GNP.