Research On The Main Part Of Financial Resource In Chinese Cities

City is the density area of modern industry and population. It deserves a very important position and function in national and regional economic & social development. It plays the leading role in national economy and social development. It is the engine of economic development and growth, having powerful effects of agglomeration and spillovers. Through the effects of spillovers radiating areas out of the city, it brings about the development of regional economy and even the whole nation's economic and social advancement, In the 21st century, the world has been growing from the "urbanization century" to the "urban century". It was pointed out at the "Second World Conference on Housing" in Istanbul in 1996 that "the 21st century is the century of urban area" and city is "the engine giving an impetus to the new world development". In the future city will serve as motive power of economic development. Research shows that perfect division power system of finance has positive interactive relationship with government scale, economic development and economic efficiency. But in the course of reform of our country's division taxation, local finance appears a lot of problems. For instance, it is obviously not symmetrical in the power force of central government and local government, the "deprivation" of local finance is seriously bad, the local finance is not adaptable to local responsibility and rights, and the municipal government has not got stable financial resources. That how to set up scientific and reasonable main part of financial resource in municipal government is serving as the key issue of our nation's reform of finance system, also serving as the important practical and theoretical issue which is urgently studied and is to be tackled by local finance. It is therefore deserving very important theoretical and practical meaning, for such a study is aimed to improve and perfect the division finance system, and to take both the real estate tax income and the city land rent as the main part of municipal finance.The route of this research paper is mainly addressed on the distribution of governmental finance resources, highlighting the study of the main part of financial resources in municipal finance. It has studied the choice-making issue on the main part of municipal finance, which is in line with the theory of public finance delineating such rules as "the division of responsibility must be prior to the division of expenditure limits, and the division of expenditure limits must be prior to the division of finance resource". These rules serve as the basic principles with their inner logic relations and logic series as a whole. This research paper has an all-round exposition toward the theoretical foundation of the main part of municipal finance resource-division power system of finance and Marxist Theory of Land Rent, comparatively analyzing foreign real estate taxation and its experience, our nation's real estate taxation evolution and main issues, our system of real estate tax income, the distribution system reform of state-owned land income. On the basis of theoretical analysis, it is ail-roundly and systematically discussed about the evidence and feasibility on how "to establish municipal finance system by taking real estate tax and municipal land rent as the main part". With the setting up of the Math model, it analyses how the real estate industry affects GDP, how the up-and-down real estate investment affects national economy, how much is the proportion of real estate tax in the local financial income, what is the inner structure of real estate tax and its relationship with national economy. By taking all the analysis step by step, it is designed to have the reform of both real estate taxation and distribution system of state-owned land rent build up on the scientific basis. Furthermore, on the basis of practical analysis and studies concerning our country's municipal financial system, real estate taxation and distribution of state-owned land rent, the author puts forward some strategic suggestions of short-term, middle-term and long-term working plans in the distribution of land extra income, the change from fee to tax, the reform of real estate tax, the setting up of state-owned land income fund, and the operation of annual land rent system.