The Evolution And Economic Growth Performance Of China’s Tax System

Twenty years ago,China has made a major decision of the tax revenue sharing system,and established a more comprehensive and efficient tax system initially.Because of the tax revenue sharing system,China’s taxation reform has achieved a historic leap.During the evolution of the tax system,the efficiency-type tax system on the one hand takes the growth doctrine as the first economic philosophy to an extreme;on the other hand the total government revenue which takes the tax revenue as the main form,has highly accumulated.Meanwhile,indirect tax as the main body of the tax structure widely has formed in the marketization reform.Through the years of rapid economic growth,China’s economy has gradually entered the new normal,original system environment has deviated.After 2008,China has missed the best opportunity to adjust the tax system,at the same time the negative effects of system to economic development gradually has saturated,therefore the tax system of economic performance as the original incentive variables changes to the stable constraint of economic growth,and phase transformation of economic growth needs to reshape the tax system.In view of this,the tax system is facing re-evaluation and trade-offs.Under the perspective of the generalized system of taxation,this article systematically measures the performance of Chinese economic growth from the three dimensions of macro tax burden,tax structure and tax management system evolution.Specific research relates to the following questions:Firstly,we research the economic growth performance of the macro tax burden.Under the current macro tax burden and economic growth theory framework,this chapter discusses the three diameter macro tax burden rate and the marginal rate of macro tax burden on economic growth.The influence of the test results show that:in the evolution stages,the characteristics of "income" tax system directly bring three calibers of macro tax burden to rise.In tax system construction period,more variables are not significant.During the system development and weak transition periods,macro tax burden rate has a significant positive correlation with economic growth rate,which continues in the strong transformation period.After that the relationship reverses,negative effects of macro tax burden become increasingly prominent,and the intensity is greater than the front three stages.About the marginal rate of macro tax burden,it has experienced from the negative influence on economic growth to positive momentum.In the different diameter the analysis results show that:with the expansion of caliber the extensive existence of non-tax revenue and lower management level have adverse effects on growth performance.Thanks to the reform of the budget in the late,the negative effect of the tax revenue system in the strong phase has been gradually weakened in the weak and strong transition period.During the whole performance releasing of tax system,the growth performance of macro tax burden rate is significant.Regional empirical results reflects that the influence of the regional macro tax burden rate is positive in the whole dividend-releasing period of tax system,but for the impact of the marginal tax rate,the coefficient is negative and not enough significant,the central and western regions of negative effects due to the macro tax burden is more large than the eastern region.Secondly,we analyse economic growth performance of the tax structure,which is more focused on the structure evolution perspective of the tax system.From the results of the overall evolution,we find that the growth performance of direct tax system is very worried,due to the lower proportion of direct taxes and imperfect taxes,total lack and unsound economic regulation of direct taxes reduces the economic growth performance.In the latter evolution of the system,its negative effect is very prominent,economic growth performance loss is far greater than positive economic growth performance from indirect tax system.The reason of the case is that the indirect taxation has conformed to the inherent requirement of China’s tax arrangement after the tax reform,significantly promoted the economic growth,and also released long and positive performance,but the intensity has a significant decline in the final stage.In contrast,on regional perspective,the positive economic performance of the tax structure in the eastern region has an distinct advantage,the central region is second,and the evolution of tax structure in the western region is slow.Finally,we study the economic growth performance of the tax revenue sharing system.By building a system of indicators to measure performance,this chapter analyses the economic growth performance from the provincial and regional level.In order to judge whether the system is reasonable,the article finds that after the formation of tax system,the economic growth performance of government spending has not fully realized;the negative effects of government revenue expansion is prominent.From the dynamic point of view for a long time,the root of the income expansion is the non-standard government functions and the unclear definition of expenditure responsibility.In the Evolution of tax system,the periodic fluctuations of economic effect of government spending and government revenue under the framework of the tax revenue sharing system appear.Taking the 2003 as the point of division,the reflecting of government revenue and expenditure to economic growth reverses.But in the strong transition period of tax system,the negative government income effect on economic growth has been strengthened.In term of institutional norms,tax decentralization has insufficient incentive.From the results of the overall evolution,the mismatching of revenue and spending under the tax distribution contract restricts the economic growth after the formation of the system;the contradiction between revenues and expenditures becomes outstanding;the transfer payment of economic performance is yet to be released.In phased evolution,the tax structure on financial incentives hinders economic growth performance;the tax sharing as the positive variable on economic growth turns to negative variables;the asymmetric of financial rights deviates from economic growth targets;the adjustment of revenue and expenditure under the government transfer system has an inadequate economic adjustment.To determine whether management is scientific,we make the empirical analysis and find that whether the whole or phase analysis,expansion of budgetary revenues and expenditures promotes economic growth.On the regional analysis,the negative effect of the tax revenue sharing system is reflected in the east,the western and central region.Through the study of the three issues,this paper reviews the evolution of the tax system and economic growth performance of tax system.The results prove that:the 1994 tax reform is the rational act for China’s economic growth and development,we not only need to affirm their contribution,but also need to confirm its amendments.After the 1994 tax reform,the path of efficiency-type tax system is matched with economic growth,but in the latter part of the system evolution,the tax system’s inherent flaws appear.Under the tax revenue sharing system economic growth performance of the tax system gradually grows weaker.Long-term system inertia of the efficiency-type tax system is not beneficial to the conversion of economic growth path in China.On the occasion of depth economic reform,we only should choice the"Brokeback survival",go to the negation of negation,reform the tax system,maintain an appropriate level of macro tax burden,optimize tax structure,and remodel an effective incentive framework of the intergovernmental tax decentralization,which will be the key to a new round of economic growth promotion.