| The structure of the state revenue and expenditure is the economic foundation of the state political power, and is the core of state fiscal policies. It is the most significant variable that influences the expansion and contraction of the total domestic demand in geographic regions, distributions of classes. It is also the most critical indicator for as well as the key to the comparative study of the industrial structure, labor productivity, industrial policies, GDP, GDP per capita and the national income per capita of countries. Based on the study of the structures of the state revenue and expenditure in Britain and China from 14 century to 17 century, this paper tries to provide the following values:1. Differences in tax structures between Britain and ChinaThe structure of the state revenue and expenditure is a major component of a country's economic system. It affects the economic growth and the price level mainly by regulating the expansion and contraction of total domestic demand. It reflects the state's industrial productivity and contribution to the GDP, and at the same time directly encourage and inhibit the development of different industries. It is a macro policy that influences the national income and prosperity. Different taxes and expenditure structures reflect different economic development features of a country. This paper takes the structures of state revenue and expenditure in Britain and China from 14 century to 17 century as the subject of the present study. Using empirical analysis in history, and being guided by the theories in finance and accounting, the present study tries to find out the different influences to the industrial structure and economic growth brought by the different state revenue and expenditure structures through resituating the state revenue and expenditure structures in Britain and China according to the data model, and the quantitative study of the data model of the situations.2. Problem model(1) The structure analysis of the revenue dataThe value of analyzing the revenue structure is to figure out the following issues: what was the state revenue structure? Why the Chinese agricultural tax rate was much higher than the UK's? Why was the national debt not issued in Ming Dynasty? From which region, which class, which industry was the revenue collected? Will taxes be different according to the region, class, and industry? If so, what are the differences of the rate and why there are differences? Did it due to man-made preferential care? Or was it the reflection of the production rate and income level of the industry or the class? What was the total amount of revenue of the different regions, industries and classes? What was the total amount of revenue per capita in different industries? What was the proportion within the industry or the class?(2) The structure analysis of the expenditure dataThe value of the structure analysis of the expenditure is to figure out the following issues: where, to which class and for what matters were the state's financial incomes spent? What was the amount of the revenue spent on different regions and matters? What was the total amount of financial expenditures per capita in different industries? What was the proportion within the industry or the class?3. Core Research MethodsThis paper takes the structures of state revenue and expenditure in Britain and China from 14 century to 17 century as the subject of the present study. Using empirical analysis in history, and being guided by the theories in finance and accounting, the author tries to conduct the study by resituating and analyzing the state revenue and expenditure structures in Britain and China.4. The conclusion(1) The comparison results of the revenue structures of Britain and China By comparing the revenue structures of British and China, we found that: the business tax which was mainly from the tariff and the national debt play dominant roles in Britain. The agricultural tax was second to them. However in China the agricultural tax accounted for the main part with business tax being second to it. There was no national debt issued.(2) The comparison of the expenditure structures of Britain and China By comparing the expenditure structures of Britain and China, we found that: the expenditure of both Britain and China were mainly on wars and administrations, however great differences existed inside. A large amount of Chinese fiscal expenditure was used for administration and the expenses of the royal family, accounting for 50% -70% or so of the total expenditure; while in Britain it only accounted for 4% -28%. The difference also existed in their expenses on wars with China accounting for 30%-50%, while Britain accounting for 66%-96%. Besides, Chinese were at wars mainly for defense in nature, while the British people were fighting for economic interests and colonial expansion. Finally the war exhausted Chinese Ming Dynasty to destruction. However in those wars fighting against countries in Europe, Britain beat the reveries, and established the empire on which the sun never sets.(3) The profound explanation of the comparative results of the revenue and expenditure structures of Britain and ChinaIt is the different revenue and expenditure structures in Britain and China that determined the developing directions of the two countries in their future. The resources obtained from the agricultural was greater than business in China, therefore the agricultural tax had the absolute advantage in revenue. However taking the property tax-based direct taxes and customs duties as the dominant revenue, Britain started the transition from agriculture to industry and commerce. It is the different fiscal policies of the two countries that allocated the resources of two countries differently, forming different labor productivities and national incomes. And it is the different labor productivities in agricultures and industries that lead the huge gaps in GDP and GDP per capita between the two countries, therefore made Britain the riches country in the world, while China the Sick man of East Asia. |
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