The Analysis Of Tax Policy Under The Influence Of Interest Groups

Since the reform and opening, especially after entering the new century, social political and economic structure of China has been under profound changes all the time, the reform has entered a critical period, the transition is inevitable. China already formed diversified structure of interest, but the adjustments of diversified structure of interest are still the focus and difficulty in the process of social transformation in the future. Therefore, the current ministries, local governments, industry associations, companies and other interest groups will develop through this background in this society, but they have been able to intervene actively or passively decision-makers for the policy of running processes.Tax policy is a special kind of public policy based on large rage effects on other types of policies. It is one of most important and often used policy for the current government. From the basic revenue functions and control functions perspective, it focuses on interest and which is the fundamental for any interest group. Therefore, any slight change in tax policy would allow interest groups immediately alarmed. Along with China30years of market-oriented reforms, various interest groups have left their mark through the tax policy process, regardless whether making, the development or implementation phase of tax policy.Tax policy and interest groups are the two major topic in this paper, and the purpose of this writing is to investigate hidden intrinsic link between tax policy and interest groups. There are many previous studies related to the relationship between tax policy and interest groups. However, only a few of foreign studies systematically investigate in to this topic, and barely any research of this kind is done in China. As Leo Tolstoy once said,"The right path is this:learn from what your predecessors have done, and move forward. Therefore, we need to study prior research in order to move forward. This paper is based on the process of tax policy, which is in accordance with the brewing, development, implementation phase of the main line, and also study around how the interest groups affect the process of tax policy. Hopefully, we can find some ideas about regulating interest groups'impact on tax policy.There are six chapters in this dissertation. The first chapter is introduction, introduce the background influence of interest groups and significance of tax policy, also analyze the current status of research at home and abroad, in order to summarized their ideas, build the basic framework, listed research methods miss point and innovation of this paper.The second chapter provided theoretical analysis for the impact form interest group on the tax policy process. There are mainly aspect of theory.interest group theory, which is the core to explanation for interest groups'impact on tax policy; tax policy theory, as one of public policy interest groups affected system and institutional system of tax pol icy; values orientation and psychological theory for those interest groups influence the tax police.The third chapter states the problems and impact from interest groups of taxpolicy in the taxpolicy embryonic stage. First, the paper states the tax policyissues and basic causes; and then, from the game theory prospect of vi ew, analyze the ma in motivations for interest group or coalition that participating in the tax pol icy making; at last, interest groups for different types of tax policy in promoting the specific problems affecting launched elaborate.The forth chapter discussed the impact of interest groups in the tax policy making process (legalization process). The chapter starts with sorting the development process of China's current tax policies, and then investigate the impact from interest group the formulation of tax policy on the basis of game theory; finally, provides a detailed analysis tax concerns and impacts of interest groups in the tax making process.The fifth chapter is about impact of interest groups in the tax policy implementation process. The chapter start with the reasons that interest group influence the implementation tax policy, the results of the implementation of tax policy for interest groups, and a general review about interest group participates in the tax policy implementation. Also, the specific impacts of corporation interest groups and local governments on tax pol icy were discussed respectively.Chapter ? established the logic for standardizing interest groups influence in the process of tax policy, primarily gave detai led suggestion about practical methods and system construction on both the implementation and making perspectives of tax policy. Moreover, a number of suggestion for transitional method, that regulate the behavior of interest groups to undermine the negative impact, was provided. Hopefully, it would play a positive effect on promoting the Chinese tax policy process.As the area of research about the interest groups' impact on tax policy currently is still a blank, so topics about formulation and implementation process of tax policy may have issues that have not been studied. in addition to the impact of interest groups on tax policy is an ongoing process dynamic process of development, especially in this economic and political transaction period of China. The means that interest groups influence the tax policy are constantly updated, coupled with the continued reform of China's political system construction, so it can be seen that the analysis of the interest groups impact on the tax policy is constantly updating process.