The Research On The Countermeasure To The Problem About The Non-equilibrium In Chinese Regional Tax And Tax Source

Although tax distribution system had affected the structural reform of the fiscal andtaxation system in China, and clearly differentiated the central tax, local tax and taxshared by central and local governments, with the development of socialist marketeconomy, a few problems gradually emerged--some of them were very serious--under therealization of economic development and other social goals, which had seriously affectedthe social harmony and the sustainable development of the economy. Especially since aperiod, as a result of the design of tax system, enterprises trans-regional operation,resources of primary product pricing and malignant tax competition and some otherfactors, the tax transfer had been formed in different regions, making deviation andnon-equilibrium between taxation and tax sources, which on one hand, led to thenon-equilibrium of the regional industry structure development and slow upgrading, andon the other hand, led to the distortion of local government provision of public goods,reducing people’s welfare. But the existing research on this aspect of the study is onlyqualitative description and interpretation, not from theoretical and Empirical Study ofquantitative analysis, lacking of the guidance for the theoretical basis for non-equilibriumproblems and strong explanations of persuasion, especially lacking of the explanation forthe countermeasure for the rapid growth in local infrastructure investment and theshortage in health science and education and other public goods provision. The existingstudies of targeted is so poor that it didn’t put forward measures which aimed at thecauses of the problems, besides, on the optimization of tax distribution mechanism thecountermeasure, the study giving countermeasures were too principle, some also becamea mere formality. Since these studies were inadequate, this research need to be continuedto conduct in-depth.This study based on the theoretical framework of fiscal decentralization, taxcompetition theory and tax fairness theory, theoretically analyzed the problem about thedeviation between taxation and tax source caused by regional tax revenue transfer, inorder to strengthen the system construction, normative regional tax competition, areasonable division of local governments and tax revenue, to narrow the regionalincreasingly significant tax and the sources of the non-equilibrium trend, to promote our country’s tax system of scientific development, to reduce regional economic interestcontradiction, and to promote economic and social equilibrium and coordinateddevelopment. This paper is divided into eight parts.The first part is the introduction, which has introduced tax transferring in differentregions as the results of enterprises trans-regional operation, malignant tax competition,the design of tax system and some other reasons since taxation reform in1994, makingunbalanced financial growth in provinces and cities and which led to our country’scurrent regional tax and tax source between non equilibrium research direction andresearch method.The second part has briefly introduced the research on taxation non-equilibriumfrom the domestic and foreign experts and scholars.The third part has presented the basic theory about non-equilibrium between the taxrevenue and tax source, and fiscal decentralization theory, including tax transferring, thetheory of fiscal decentralization, tax competition and tax system such as the type, toolsand related economic theory.The fourth part of the essay deals with the non-equilibrium characteristics of taxrevenues and tax sources of different regions in our country. Based on the functions ofpublic finance, the tax revenue changes and the regional tax income distributive changesare analyzed in both longitudinal and lateral ways. Considering the financial andeconomic data are easy to obtain and the non-equilibrium characteristics of differentareas are similar, this study selects some representative provinces as samples to analyzethe main characteristics and deviation degree and gives the basic evaluation on thenon-equilibrium problems of tax revenues and tax sources of different regions.The fifth part will explore how the non-equilibrium influences the functions of thelocal public finance in two aspects. For one thing, after the establishment of publicfinancial system, the local tax revenue transformation which includes the transformationof the economic growth and economic structure will affect the economic developmentand the local industrial upgrading. For another thing, the proper or improper competitionof the tax revenue will lead the social welfare to increase or decrease. Therefore, the taxrevenue competition between regions will have a great effect on the supply of publicproperty. Based on the functional structure of the tax revenue, all the problems areanalyzed by comparing the similarities and differences between regions and inside the regions.The sixth part will introduce and analyze the expression forms of reasons, such as,the design of tax system, the enterprises’ management across areas, the malignant taxcompetition, the price of primary resource products, and assess the quantities andprocedures of the affected ranges and the deviation degree of tax sources.The seventh part will compare the typical local tax allocation mechanisms ofdifferent countries in the world, discovering the related measures, methods, advantagesand disadvantages to narrow the non-equilibrium of tax revenue and tax sources betweenregions. The analysis will provide rich experience and reference for strengtheningChina’s local tax distribution system and reducing the non-equilibrium between regions.The eighth part studies countermeasures to optimize the Chinese local tax allocationmechanism. After analyzing of reasons for forming the non-equilibrium of tax revenueand tax source between regions, the paper will give some policy suggestions. The first isto clearly define the authorities of government and property rights at all levels andstrengthen the legal construction of the tax distribution. The second is to optimize the taxstructure, standardize the tax competition and improve the management system and otheraspects in detail, with justice and efficiency as basic principles, the scientific outlook ondevelopment as the guiding ideology. What we achieve can promote the balanced andharmonious development of economy and provide reference and operational suggestionsto narrow the non-equilibrium of tax revenue and tax source between regions.