Mechanism Of Coordinated Regional Economic Development Tax

Taxation affects economic development through exerting influence on essential factors of production. Taxation mechanisms affect regional economic development as follows, tax revenue distribution among districts, tax burden distribution among districts. The two acting mechanisms function through reward of factors and flowing of factors etc. The economic gap among the eastern, the middle and western districts in China is quite great because of imbalance in tax revenue distribution and tax burden distribution to some extent. One important point in evaluating the efficiency of a taxation system is to evaluate the influence that the taxation system exerts on regional economic development and the influence on macroeconomic efficiency thus. After the analysis of the influence that Chinese tax system brings to regional economic development, a conclusion is drawn that the taxation system needs reforming to suit the demand of establishing market-oriented economic structure and applying a strategy of harmonizing regional economic development. The core of reformation is to form a relatively fair environment in taxation, which requires perfecting the tax institution and reforming the means of tax .x venue distribution.At the beginning of the essay, i.e. in the foreword, the significance is pointed out about the study, the substance and terms concerned is briefed and the progress of the study at home and abroad is reviewed. The first chapter discusses taxs function in promoting economic development and harmonizing regional economic development. It says that two acting mechanisms, that is, the unfairness of tax revenue distribution, tax burden distribution among districts will lead to inharmoniousness of regional economic development, causing geographical dual economy. The second chapter expounds taxation practices abroad to harmonize the regional economic development and evaluate briefly them to abstract experiences from successes and lessons from defeats as reference of Chinese taxationreformation. The third chapter analyses concretely the relationship between taxation and regional economic development in China by taxations acting mechanisms and comes to a conclusion as follows: taxation system in China is one of important elements which lead to inharmoniousness of regional economic development, so it needs further adjustment. The fourth chapter puts forward some ideas to reform Chinese taxation system and the purport in them is to establish a relatively fair environment for competence in taxation and to harmonize regional economic development At last, the thesis draws a overall conclusion. The conclusion summarizes all arguments and reasons, points out the new ideas and shortcomings in the essay and discusses some points that require further research. The thesiss discussions focus on the first chapter and the third chapter in which theoretical analysis and substantial analysis are carried out.Mechanism analyses permeate in the thesis and some new ideas are put forward The new thought considers thoroughly the .relationships between taxation and economy, between taxation and regional- economy, between tax policy and economic practices, between harmonious development of regional economies and macroeecnonY'.:1. development e1c. The ne\v idea indicates thai iax;