Taxation Effects On And System Analysis For China's Security Market

It is self-evident that the security market is increasing its influence on today's economy and whether it keeps efficiency becomes one of the key issues for economy development. There are many factors to affect the national security market, and taxation system is one of the crucial factors which must be treated with attention. First of all, from a general perspective, there is no comprehensive taxation system regarding the national security market in China. In the past practice, most of the taxation policies for security market have been generated or modified in aim to solve specific taxation issues notified during the development of security market, so there is not a systematic and comprehensive way to design the taxation system for the security-related economy. This unsystematic status limits the function of taxation system and becomes more and more inconsistent with the development of security market. It is very constructive and necessary to pay attention to the taxation system for the security market, to determine the regulatory direction by referring to international experience, and to modify the current taxation policies and instructions. This assits preventing and mitigating the finance risks, supporting and accelerating the development of security market in a healthy, stable and legal way.This article sets the taxation system for security market as the research object, employs the normative analysis and empirical analysis methods, and starts the systematic domenstration from several important areas which are both inter-involved and related to the taxation system for security market. This comprehensive and systematic analysis way indicated in this article is expected to be attributable to the further research work in this field. By detailing the analysis in 4 respects (Stock Issuance, Stock Exchange, Stock Income and Stock Legacy), we conclude that the taxation system for security market has resource distribution and adjustment capability so as to influence the security market behavior and thus the social resource allocation by generating"Income Effect"and"Replacement Effect"through variety of mechanisms, such as psychological anticipation mechanism, price mechanism and investors'income mechanism. If there is inefficiency in this taxation system, it may result in excessive taxation burden such as loss for both investors and debtors and loss for inefficient work process in the security market. On the contrary, a better taxation system, even though it may not be the most optimized system, could result in taxation benefit surplus. Therefore, we should learn to understand the nature and internal rules in the taxation system for security market, and then make use of...