Macro Tax Burden And Economic Growth Study

Tax burden, which is the measure of taxes borne by taxpayers, reflects the tax distribution in respect of social product of a certain period between the government and the taxpayers. The degree of tax burden can be studied in macro and micro methods. In respect of macro method, we study tax as a whole or study the tax burden degree of the national economy. The index, which reflects the overall tax burden in a country, is called macro tax burden. The height of macro tax burden indicates the concentration of distribution of national economy by the government as well as the intensity of social and economic function and financial function. The height of macro tax burden is not only the dependence of specific tax policies made by the government but also the overall expression of carryout of the tax policies. At present, the current international index of macro tax burden or the public-accepted index measuring gross tax burden in a country is the proportion of revenue to GDP in a certain period (one year generally) in respect of a country or a region.To make economic growth is the key objective of macroeconomic policy of a modern government. The factors driving or restricting the economic growth can be classified as two categories: one is the market mechanism force, so-called invisible hand, which is a internal factor influencing economic growth, the other is macroeconomic policy force of government, which is the external factor influencing economic growth. Though there is no doubt about the function of market mechanism in promoting economy in the most theories of western economics schools, there are still disputes mainly existing in regarding and evaluating the efficiency of governmental macroeconomic policies on economic growth as well as the relation between the market mechanism and governmental policy. In this regard, many economic growth theories are concerned with governmental tax policy that is an important issue .Tax is used as a basic measure by the government to collect revenue to allocate resources, and tax has widespread influence on companies, individuals and economy. Government levies taxes so as to influence taxpayers' option of consumption, saving, investment and labor, and to influence economic growth at the end. Tax burden, which reflects governmental tax policies and is in relation with the distribution of social benefits, is the core and soul of tax, and is the functioning point in respect of tax used as leverage. Therefore, tax burden is not only the key issue of tax system and tax policy but also one of the key issues of social and economic life.The internal and external factors influencing economic growth are to influence performance efficiency of national economy by means of influencing resource allocation. While we know that the national economic performance is ultimately reflected in the volume of GDP. Different allocation of resources will bring about clear different GDP under the condition of certain production elements and technology. Generally speaking, market mechanism has the function to better the allocation of resources in market economy, and law of value realizes its function. While as market mechanism has its own intrinsic defects, it appears out of order in some circumstances, so it is very important for government to regulate the market in a broad way. Government can make effective use of financial and monetary policies to make good the defects of the market mechanism so as to better the allocation of economic resources socially. Undoubtedly, tax, as an important financial policy, has an impact on the resource allocation, but there is not a definite quantities limit to the impact. It is generally noted that the impact of tax on resource allocation mainly exists in the product structure, that is to say, the tax influence on reasonable resource allocation in both a trade and different trades. But the above-mentioned statement is not complete. In addition, macro tax burden or macro tax rate still has an influence on allocation of resources, because the height of macro ta...