A Study On The Policies On Taxation In The Industrialization Advancemen In Undeveloped Areas

There is no doubt that the market as a basic means has an incomparable role in the allocation of resources in pursuit of efficiency. We have already entered into the industrial age. However things are dialectical. The market is incapable in the promotion of justice. It can result in two big problems which are inequality of the personal income distribution and unbalanced development of regional economy. The first problem belongs to the research field of the welfare economics. Development economists always study the second problem. Through analysis of the literature, we found that the prescription which is opened for the development of underdeveloped countries by development economics is industrialization. Of course, these prescriptions are also applied to solving the regional difference existing in our country, including GuiZhou province.In general, means of industrialization cover aspects of political, economic, cultural, and so on. The economic means includes the policy of fiscal, financial, taxation, industry and foreign trade. As a matter of fact, taxation policy is one of economic policy which promotes the area industrialization process. And it is not the most important economic policy. The role of the fiscal policy and monetary policy is more important than the taxation policy. However, the current literature is less from the view of taxation which is indispensable in promoting the industrialization process. So, this article detailed studied itThe first chapter explained the research purpose, significance, literature of domestic and foreign, content, research method and innovation of this article. The value of this article is the innovation of data sources, research conclusion and policy suggestions.In second chapter, this article discussed the theoretical basis using the theory of comparative advantage theory and late-development advantage. With respect to our country, underdeveloped areas always belong to the area which the industrialization level is relatively low. If there want to promote their development, it must promote the process of industrialization. And promoting their industrialization process need to exert their comparative advantages and late-development advantages. It is helpful for underdeveloped areas using the means of taxation. Specifically, this chapter introduces the related theory, including theory development, theory of normative statements, and so on.In the third chapter, it examined the relationship of industrialized level and tax burden. The empirical study shows that the relationship between value-added tax burden rate and industrialized level in the eastern region of China is significant and positive, the relationship between consumption tax burden rate and industrialized level in these areas is significant and negative, and the relationship between corporate income tax burden rate and industrialized level in these areas is also significant and negative. The relationship between value-added tax burden rate and industrialized level in the middle region of China is significant and negative, the relationship between consumption tax burden rate and industrialized level in these areas is significant and positive and the relationship between corporate income tax burden rate and industrialized level in these areas is also significant and positive. The relationship between value-added tax burden rate and industrialized level in the western region of China is insignificant and negative, the relationship between consumption tax burden rate and industrialized level in these areas is insignificant and positive and the relationship between corporate income tax burden rate and industrialized level in these areas is also insignificant and positive. From the above conclusion, the reason for inconsistent results is that different areas have different tax policy, the model hasn’t took account of other factors which probably determine the result. The industrialization level is not only depending on the tax means. The industrialized level is a result of comprehensive effect. It also depends on the local finance, investment environment and legal system.In the fourth chapter, it introduced the tax policy of industrialization process to find a reference for Guizhou province. In detail, it introduced practice of the United States, Britain, Germany, France, Italy, Japan and South Korea in foreign and the specific practices of other fraternal provinces and regions from three respects including preferential tax policies, tax source construction and improving of tax service in home. In the fifth chapter, it took Guizhou Province as an example and detailed introduced and revalued the tax policy of industrialization process. At first, this chapter analyzed Guizhou province’s tax basic situation of industrialization process. Then, it analyzed current tax preferential implementation to find main problems. At last, it also put forward suggestion for tax policy of he industrialization process.In the sixth chapter, it put forward that tax policy plays an important role in promoting industrialization process. Of course, the industrialization process needs a series of policy. Combined with the results of empirical research, it also put forward that the policy of preferential tax is a required policy. And it can’t represent all. It also needs the improvement of tax policy, tax jurisdiction, tax collection, tax management, and so on. Combined with China’s current tax practice, it also put forward some suggestions, including striving for a number of tax policy, issuing a number of tax policies by the provincial government, and changing the idea. At last, this chapter also put forward the related policy suggestion.In the seventh chapter, it summarized viewpoints of this article and discussed the feasibility of related ideas. The underdeveloped area always is the relatively low level of industrialization. So the only way for these areas is promoting the process of industrialization while promoting industrialization process is inseparable from the support of tax policy. Then, the part of empirical study showed that tax policy is only one of the means to promoting industrialization process. It may be not the most important means. Promoting industrialization process should take account of preferential tax, tax jurisdiction, tax collection efficiency, tax compliance, tax consciousness, etc. Due to various reasons, the suggestions and ideas may be not mature. It needs to be perfect in the later work.