Research On The System Of Tax Expenditure In China

Tax expenditure is a special kind of government expenditure which the country, in order to realize certain social economic goal, adopts the tax system deviating from current tax law structure to encourage specific economic activities, offers taxpayers various kinds of tax preference to lighten their tax revenue burden, promotes and supports the economy development. It is a kind of tax theory that has been forming and developing in western countries for more than 20 years and is quite received by western tax theory circle.Tax expenditure is the important means that our country utilizes tax revenue lever to regulate the economic. The fields involved often are the ones that finance direct pay can't estimate or that the result is unsatisfactory. But for being deficient in systematic management and control of tax preference policy, a lot of questions exist in our current tax preference system. It not only influences our country's normal financial income, but also affects the sound development of market economy at the same time. With the constant development of market economy, it urgently needs to set up the tax expenditure system of our country to solve the problem that exists in the current tax expenditure policy. So, it seems extremely important to research and explore tax expenditure theory. Our country began to study on tax expenditure theory from later of 80s. It was relatively short. And so far it cannot form an intact theoretical system for guiding practice. The purpose that this thesis studies is to remedy the current deficiency in this research field of our country, to carry on deep research and exploration to our national tax expenditure system innovatively, to attempt to make the tax expenditure theory of our country tend towards standardizing, systematizing, and to structure the scientific, normal tax expenditure budget system, tax expenditure management system according to the national conditions. It also hopes to provide theoretical direction for numerous and complicated tax expenditure practice in reality. In a word, through the research of this thesis, it hopes to form the intact tax expenditure theoretical system and use it for guiding practice.This thesis regards tax expenditure system as the main research object, regards tax expenditure theory as the foundation stone and assists with qualitative analysis and quantitative analysis. On the basis of using international experience for reference, combining the actual conditions of our country, it structures our national tax expenditure budget system and tax expenditure management system. Using the basic principles of western economics and system economics ,and combining the modern tax expenditure theory, this thesis has carried on exploring and researching to several theoretical questions of setting up the tax expenditure system. It strives to break through and innovate to some extent on the basis of forefathers' research results. The research work and innovative achievements of this thesis are mainly the following aspects:(l)Use western economics analytical method. It analyzes the influence of tax expenditure to market mechanism, industrial structure, capital and production, economydevelopment and economy stability from theory aspects. (2) Propose the goals and principles of setting up the tax expenditure system. On the basis of using western countries' experience for reference, combining the reality of our country, it designs the basic frame of tax expenditure system. (3)Adopt the method of combining qualitative analysis and quantitative analysis. Take our country's current corporate income tax as an example, it adopts the foreign first type differentiation method which has a stricter concrete standard. It concretely distinguishes the tax expenditure of our country. On the basis of distinguishing , it estimates the tax expenditure cost. (4) Discuss the question of confirming the scale of our national tax expenditure budget. The proportion of tax expenditure of our country to GDP should be about 7%-8%, to financial total expenditure should be among 20%-25%, and to gross income of tax revenue receivable should be about 28%. The scale of tax expenditure should be about 1/3 of the real tax revenues in our country. Meanwhile, it designs the tax expenditure budget tables of our country. (5) Chose the mode of our national tax expenditure management. Namely, under our country's realistic condition, it at least should start with the report management mode which is by means of semi-budget management, and regard including budget management as the final goal. The point range of tax expenditure should be the tax revenue preferential policy which can be substituted by financial direct payout and have specific purposes. The taxes involved should centre on the mode of analyzing the tax expenditure of income tax, put circulate tax on second only to or equal position of income tax.This thesis not merely remedies the tax expenditure theory of our country, strengthens the people's consciousness of tax expenditure cost and makes people pay more attention to the results of tax expenditure. Meanwhile, it puts forwards that tax expenditure quantified should be included in the category of budget management, which will make government budget further more perfect and offer a kind of new thinking for further development of finance theory and the government's fiscal administration. On practice, to implement tax expenditure budget system in our country, not only it's helpful for tax expenditure openness and transparency and it's helpful to promote optimization of tax system and improve transparency of finance, but also it's helpful to manage tax expenditure on the whole and macroscopically, to appraise the real economy and social benefit of tax expenditure over a period and to carry on overall control and supervision to government's expenditure. Thus, it strengthens the central macroscopic ability for regulation and control. In sum, it has very important theory meaning and practice value to set up tax expenditure system in our country.