The Theoretical Analysis Of Agricultural Taxes And Fees

This dissertation discusses the source of agricultural taxes and fees. We will engagein this research from tax equity, farmland ownership and governmental regulating rentrespectively. The concrete logic thoughts are as following: 1. Estimating marginal revenue of all kinds of factors (land, capital and labor) ofagricultural production. Supposing marginal revenue of land and capital are both zero,then agricultural production revenue will be changed to be labor revenue: namely wagesof agricultural labor force. According to personal income taxes criterion—the startingpoint is 800 yuan/month, are agricultural labor revenues taxed fairly? If agriculturallabors ought not to be taxed, but in fact burden agricultural taxes and fees, this casemeans agricultural taxes and fees are discrimination taxes only on farmers. We willdiscuss agricultural taxes equity in chapter 4. 2. From the viewpoint of tax equity, agricultural taxes and fees are discriminating taxeson farmers. This means the justice and rationality of agricultural taxes and fees face greatchallenges. In order to get rid of the difficulty, we change our research focus from taxequity to farmland rent. In fact, research on agricultural taxes and fees from land rent isattractive. If agricultural taxes and fees are not from taxes, but from land rent , we canattribute agricultural taxes and fees to rural land ownership owned by several levels ofgovernment, it means agricultural taxes and fees are from the revenue of farmlandproperty rights. Assuming marginal revenue of capital is zero, marginal revenue of agricultural laboris its opportunity cost, that is labor income from agriculture's alternative use. We assumeagricultural labor's marginal revenue is 200yuan/month, 300yuan/month or nonagricultural labor income every month respectively, then estimate land rent of everyassumption, compare agricultural taxes and fees to land rent on every assumption to see ifland rent on every assumption can offset farmer family's taxes and fees. If land rent can'toffset farmer family's taxes and fees, it means agricultural taxes and fees don't come fromland rent. We will research if agricultural taxes and fees are from the revenue of rural landproperties in chapter 5. 3. If agricultural taxes and fees are not from tax and farmland ownership rights, thenthe only explanation is transaction costs of farmer's escaping agricultural taxes and feesare too high. Assuming transaction costs are zero, discriminating tax on farmers will notbring into effect because a great many farmers will shift into non-farm vacations in orderto escape taxes and fees. If farmland rent can't offset farmer family's taxes and fees, thenfarmers will give up tilling farmland in order to escaping income fall due to high taxesand fees on assumption of zero transaction costs. If farmers will not give up tillingfarmland on the condition of tax discrimination or bearing high farmland rent, it meansthere exist transaction costs counteracting production factors' mobiling. The transactioncosts are very high that farmers can escape from discriminating taxes and high farmlandrent. How to evaluating farmers transaction costs? What is the relationship betweentransaction costs and agricultural taxes and fees? Our investigations are as following:Farmers labor force can undertake agricultural production, or undertake non-farmproduction. If labor income undertaking agricultural production is less than thatundertaking non-farm production, but the farmer still undertaking farm production, itmeans there exist transaction costs. If there are no transaction costs, farmers must enterfrom agricultural to non-farm industries. Therefore we define the minimum transactioncosts that farmers can't move freely as the balance that farmers non-farm labor incomesubtracts farmers agricultural labor income. Because of agricultural taxes and fees, thebalances of the minimum transaction costs that farmers can't move freely between beforeand after taxes are balanced by farmers' taxes and fees, it implies agricultural taxes andfees are...