Reform Of Rural Taxes And The Relationship Of County And Township Allocation Adjustment

Taihe county, which lies in the north-west of Anhui province, is my hometown. Of course, most of Taihe county is rural area. Taihe is a tipical county for it has three times reformations of rual tax & charge since the earlier of 20 century. Taihe is a example of the reformation not only in Anhui province but also in china. Relationship of distribution in the reformation is main topic in the paper. The dissertation adds up to five chapters.Chapter one generalized reformations of the rural tax & charge in Taihe, first one occurred from 1994 to 1996, taxed corns 50 kilogram per mu, and mu means a unit of area (=0.0667 hectares). Second one occurred from 1997 to 1999, taxed 140 yuan per capita. The third time has occurred since 2000. According to the reformations, we can find the different burden to peasants in Taihe, at the same time we can find some useful tax principleChapter two and three indicated that local states have more and more finance powers, when central state need local states do more and more tasks. With the development of education in china, local states owned extra revenue such as additional education charge not only in cities but in rural. Especially in rural area, there is no raise funds for rural education in he earlier 20 century, but raise funds became popular which made peasants feel it is a heavy'tax, so central government want abolish raise funds for rural education, but reformation make local government lost more revenue since 2000, so local government try its best to make raise funds legal So it is a interesting game between central government and local government.Chapter four and five indicated that town lost its ability of the distribution of revenue, and county controlled the revenue of town lowly but wholly. There is a example in the dissertation, Taihe controlled the revenue of 31 towns firstly in 2000, then Taihe allotted the salary for its towns. Without the county, without the stability oftowns, and without normal allotment of towns, and towns must not run well. Especially in debts, with the help of Taihe county, more than 270 million yuan reduced in 31 towns, and teachers and government functionaries lost their salary. So we can draw a conclusion that relationship of distribution in the reformation of rural tax & charge is adjusted, and allotment of county-town can be development.The burden of peasants reduced in the reformation of rural tax & charge in the year 2000, and level of burden will be kept in the future. Then the pressure of finance in towns increased, here transfer-payment is very important, of course, transfer-payment come from central government. Without the transfer-payment, without the success of the reformation of rural tax & charge. Transfer-payment is the cost of reformation of central government, for teachers and government functionaries, the reduced salary is the cost of reformation too.In a word, Taihe county provided a lively case, The burden of peasants reduced in the reformation in 2000, by this criterion, Taihe succeed, at the same time, the cost of reformation of rural tax & charge must be taken by others.