The Study On Tax Law's Efficiency

Since the fusion of economics and law after the 1960s, efficiency as an underlying proposition of economics has been at the forefront in the sphere of law. The efficient value of law progressively becomes one of the fundamental value goals of the contemporaneous law, and it justifies the legislation. Tax law is not only a great component of nation jurisprudence, but also the norm of tax apportionment activity. It plays an important role in the process of optimizing the allocation of resources, promoting economic development and social progress.With the development of market economy, taxation as the principal forum of actualization of government revenues and the effective method of resource allocation, economic regulation and equitable distribution, its position and effects in economics become more and more prominent. Tax law is the core of the nation tax system; the efficient situation has a great influence on functions of taxation, economic development and stable society.At the present day, there are few researches at home and abroad about tax law's efficiency, and there are not systematic and theoretical research system and results yet. For that reason, tax law's efficiency has been chosen as the essential theme of the research, and this theme has been very systematically researched. The research results completed not only foreign theories in this respect, but also our logical tax system. The efficiency has been a standard to evaluate and to direct the reform of the tax law system in China.Economics and law have been well combined in this article, using the analytical method, both theory of public selection and game theory in economics, The analysis is based on research for the meaning of tax law's efficiency and how to measure it. Viewed from a tax law's supply and demand, it is analyzed the internal relations and effects between the relationship of supply and demand and tax law's efficiency. Depending the fundamental theories, the author makes a statement of increasing tax law's efficiency and its policy construction.This article is divided into 7 chapters. The 1^st chapter is introduction; the others that are the subjective details consist of 3 sections:1^st section is 2^nd chapter——"The meaning of tax law's efficiency and how to measure it", at a different viewpoint of tax law's efficiency, the meaning is indicated that the tax law's efficiency is the ratio of tax law's profits and costs, simultaneously it is analyzed the composition of both. From the author's point of view, tax law's efficiency contains two parts: on the one side, the problem of efficiency of enforcement regulations, it means the profits and costs during the enforcement; on the other side, tax law is provided a stimulus to the economy. At the same time, the author analyzes the differences and relations between tax law's efficiency and taxation's efficiency. To measure the tax law's efficiency, the point which marginal cost equals contribution margin is the highest point of the tax law's efficiency. For easy application, it has put forward the standard of measuring legislative efficiency, enforcement efficiency and economical efficiency.2^nd sections is 3^rd, 4^th, and 5^th chapters, it has been analyzed in this section that the effects on tax law's efficiency viewed from a tax law's supply, tax law's demand and relationship of supply and demand. The concept of tax law's demand is shown in the 3^rd chapter—"tax law's demand and tax law's efficiency", it is the positive requirement of the main body of demand to tax law's resources. From the author's point of view, demand of government originated from the demand of taxation, demand of the main body of market originated from the demand of public goods. Simultaneously analyzed the effective factors of tax law's demand. The principal factor is that the main body of demand pursues the maximize advantages. The constructions among tax law's strength, consistency, different main bodies of demand affect the tax law's efficiency through tax law's costs. Tax law's supply effects tax law's profits and then the tax law's efficiency. Tax law's supply has both the positive and negative influences on tax law's efficiency.The concept of tax law's supply is illustrated in 4^th chapter - "Tax law's supply and tax law's efficiency", the tax law's supply not only means taxation legislation, also the enforcement and judicatory by government. Simultaneously analyzed the effective factors of tax law's supply. This is seen from various angles to analyze the effects of tax law's supply on tax law's efficiency. it has put forward that taxation legislature effects the tax law's efficiency immediately through its effects on tax law's costs and tax law's quality. The taxation enforcement mechanism, for instance whether there are complete and effective installations and control mechanisms effect on tax law's efficiency. The entire route, the time and the frequency of tax law's changes influences on tax law's efficiency. It emphasizes that the justice of tax law's supply is important to the enforcement of tax law's efficiency; the relation of them is homogeneous and simulative.5^th chapter - "The relationship of supply and demand and tax law's efficiency". It gives the meaning of equipoise and nonequilibrium of supply and demand. With mathematical model, it reasons the importance of the enforcement of tax law's efficiency affected by the equipoise of supply and demand. It analyzes the reason of nonequilibrium of supply and demand's influences on tax law's efficiency and its positive effects. The purpose of this theory is to direct tax law's supply and to implement the equipoise of supply and demand. Finally, it analyzes intrinsic factor of enforcement of equipoise of supply and demand through a scheme of prospective return- anticipated cost and marginal cost- marginal profit. Then it put forward the route of enforcement of equipoise of supply and demand.3^nd section contains 6^th and 7^th chapters, in this part concretely analyzed current situation, the cause of formation of tax law's efficiency and its development.6^th chapter—"current situation and the cause of formation of tax law's efficiency", it put forward that at the moment our tax law's efficiency is lower, the argument of the standard of measuring is based on the angles of legislative efficiency, enforcement efficiency and economical efficiency. The major reason is the inequality of supply and demand, it concretely includes the inequalities of the tax law's quality, the tax law's structure and the tax law's enforcement, and both surplus and omission of tax law's supply exist at the same time.7^th chapter—"the thread of increasing the tax law's efficiency", firstly, it put forward the thread of constructing the mechanism of equipoise of supply and demand: constructing the fair and justifiable gaming mechanism of tax law's legislation, reducing the costs of main body of demand, increasing the ability of their participation; optimizing the information mechanism of supply and demand to increase the exchanges of messages. Secondly, in view of our reality, the concrete recommendations that are directed toward the enforcement of equipoise of supply and demand have been put forward in this part.There are some innovations in this article:(1)Innovative view of research. At the angle of tax law's supply and demand, the research is comprehensive, systemic and embedded. The view of research has been widened, and the research results are being rich in territory of tax law's efficiency.(2)It has put forward the meaning of tax law's efficiency and the standard of measuring tax law's efficiency. (3)The concept of tax law's supply and demand are written into this article, Simultaneously analyzed their effective factors for the tax law's efficiency. (4)It has been definitely stated that equipoise of supply and demand is the essential condition of enforcement of tax law's efficiency. This statement has been argued with mathematical model. (5)It analyzes intrinsic factor of enforcement of equipoise of supply and demand through mathematical model. It put forward the positive influences of gaming plays in the enforcement of equipoise of supply and demand, and then the thread and the concrete recommendations of enforcement of the equipoise of supply and demand have been put forward, for the purpose of constructing the mechanism of equipoise of supply and demand.