On The Less Developed Areas Of Tax Reforms And Fiscal Governance Tax Strategy

This article analyzes the charges beyond taxes in the underdeveloped areas in China, causes for their existence and ideas for the reform in taxation and charge collection, and discusses several conflicts in the financing and taxation in the underdeveloped areas and the tactics to ease these conflicts. This article is divided into 6 chapters.Chapter I carries out a comparative study of different patterns in financing and taxation. This article classifies the patterns of financing and taxation into four types according to their purposes, i.e. the "government maintaining type", the "social equity type", the "macro-control type" and the "production and construction type". It holds that the scale and structure of fiscal revenue and expenditure, economic policies reflected thereof, means and methods of management of fiscal taxation are important factors in financing and taxation. This article observes the western and Chinese patterns of financing and taxation, and summarizes and analyzes various conflicts in the financing and taxation in the underdeveloped areas in China.Chapter II conducts a comparative study of economic development between the developed and underdeveloped areas. China, on the whole, is still a less developed country. However, there are great differences in the economic development and income level among various provinces in China. In this article the provinces rank minor in the total GDP and GDP per capita are defined as the underdeveloped provinces. Meanwhile, this article points out that there are underdeveloped counties and townships in the developed provinces. This article selects a few sample provinces and analyzes the industrial structure, ownership structure and ideas for economic development in the underdeveloped areas in China, providing a theoretical base for the later concentrated study of the tax and charge reform in the underdeveloped areas where the economic development is lagging behind.Chapter III looks at the present state of charges beyond taxes in the underdeveloped areas. On the basis of reviewing the definitions of taxes and charges by Chinese theoretical circle, and through observation of the features of tax receipt structure in the underdeveloped areas, this article comes to the conclusion that in the underdeveloped areas, the proportion of income tax affected by the performance of enterprises is relatively small while the proportions of other local taxes are relatively large. Thus there is little potential for growth in tax receipts. Through observation of the charges and fines within the budget, outside the budget and outside the system, this article concludes that the total burden of charges beyond taxes in the underdeveloped provinces is relatively heavy. This article looks into the charge burden on peasants, enterprises, and self-employed individuals in the underdeveloped areas upon the basis ofinvestigation and researches.Chapter IV analyzes the causes for existence of charges beyond taxes. This article believes that collecting charges beyond taxes in the underdeveloped areas is, to a large extent, due to the fact that the underdeveloped areas lack of taxation sources, the total tax receipt is too small, the economic taxation sources are imbalanced and unstable, and there is not enough stamina for economic development. Furthermore, this article also looks at and analyzes the administrative system, the fiscal system, the grain circulation system and other factors that contribute to the present state of charges beyond taxes.Chapter V describes the ideas for the taxation and charge reform in the underdeveloped areas. This article theoretically analyzes the advantages and disadvantages of taxation and charge collection and the view of Public Finance on taxation and charge collection and looks at the relationship between the charge collection in foreign countries and that in Chinese underdeveloped areas. In light of the efficiency characteristics of charge collection, the principle that the taxes are used for expenditure on pure public products and the ch...