Study On The Economic Growth Effect Of China's Taxation Governance

Tax is an important means to govern the country.Since the reform and opening up,China's tax system has undergone many major changes.In particular,the fiscal system reform carried out in 1994 has remodeled the financial structure from top to bottom,and has a great impact on the political,economic and cultural aspects.Accompanied by tax reform,China's economy has maintained rapid growth for more than thirty years.The main economic indicators have gradually shifted from a comprehensive backwardness to some of the world's leading.The country's economic strength has been second in the world.Tax administration is an important part of national governance.The document passed by the party in the third Plenary Session of the 18 th CPC Central Committee has closely linked the fiscal and taxation system with state governance.This shows that the excellent performance of economic growth implies an inner link that needs to be explored,which is the effect of economic growth in China's tax governance.Tax Governance in the broad sense is a comprehensive concept including politics,economics,law,management and so on.This article focuses on Tax Governance from a narrow perspective,that is,to study tax administration in the field of economics.The basis of tax administration is the design of tax system,including tax categories,tax items,tax burden and so on.The functions of tax administration include tax system optimization,reducing tax collection and management efficiency,increasing taxpayer compliance and satisfaction.The performance of tax governance includes the efficiency of resource allocation,the fairness of income distribution and macroeconomic stability.From the macro perspective,the adjustment of Tax Governance to the economy is through the impact on the whole national economic system.From a regional point of view,it plays a neutral regulation role by balancing the local budget.From the point of view of expenditure,it plays the role of expenditure regulation through expenditure demand and income capacity.In the development process of economic growth theory,representative theory and representative economist all analyze the function of taxation.Classicist economists Adam Simy and David Ricardo advocated light taxes,while Thomas Malthus advocated higher taxes.Keynes advocated that the government should actively intervene in the economy and adopt a wide range of incentives including tax policy.Paul Samuelson found that the progressive tax tax system has the role of "stabilizer",and that the tax preferential policy measures can be used to stimulate the expansion of the total demand.The supply school believes that the key to solving stagflation is total supply.The theory of relative price reveals the relationship between tax rate,tax elasticity and investment and labor supply,and analyzes the impact of marginal tax rate on the tax economy.The laver curve depicts the "forbidden zone" of Taxation and points out an ideal optimal tax point.In the endogenous economic growth model,the different kinds of taxes and their different tax rates will have different effects on economic growth.The income tax rate of labor and capital will reduce the steady growth rate of the economy.Although the study of tax revenue is full of debate in the theory of economic growth,further strengthening the research and practice of the tax governance theory will help our country to deepen the structural reform of the supply side,to better implement the fiscal policy of reducing the tax and reduce the cost,and to achieve the goal of economic growth.Through normative analysis,this paper attempts to deduce theoretically the influence mechanism of Tax Governance on economic growth in China.According to the explanation of economic growth theory,the transmission mechanism of Tax Governance to economic growth is realized through two channels: micro mechanism and macro mechanism.The micro mechanism is to exert effect on the savings rate of residents,the formation of investment and capital and the relationship between the supply and demand of the labor force through taxation,and interfere with the allocation of resources in the process of reproduction and the realization of technological innovation.The macro mechanism is to intervene in the volatility of the macro-economy through the automatic stabilization function and the policy of discretion,so as to balance the total supply and the total demand in a higher degree.In order to verify the results of theoretical analysis and respond to the hot topics of social concern,this paper makes an empirical analysis of the effects of tax burden and tax structure on economic growth.On the one hand,through the provincial panel data from 1995 to 2014,this paper calculates the relationship between the macro relative tax burden and the regional economic growth.The study found that an increase of 1% in the regional tax burden would reduce the GDP growth rate by 0.64% and reduce the intensity of the satellite light at night by 0.131%.The study also through the data,the empirical test of the impact of the tax burden on the social fixed assets investment is the largest,the impact on the consumption of residents in the second,and the working hours of the residents have little impact.Empirical analysis shows that tax burden has a significant negative effect on China's economic growth.On the other hand,through the provincial panel data from 1995 to 2014,this paper empirically analyses the relationship between tax structure,tax structure,tax structure and economic growth.The study found that the indirect tax accounts and the turnover tax accounted for 1%,the per capita GDP decreased by 0.036% and 0.0848%,the income tax ratio and the property tax ratio increased by 1%,the per capita GDP increased by 0.048% and 0.0955%,the resource tax ratio increased by 1%,the night light intensity increased by 4%,but the other 3 economic growth indicators were not significant;behavior tax categories were not significant.The increase in proportion has no significant impact on economic growth.According to the results of normative analysis and empirical analysis,the following policy recommendations are put forward:First,we must adhere to the market-oriented reform of the taxation system and continue to push forward the reform of the simplified and neutral taxation system.Second,the policy of reducing tax and reducing fees will not be reduced,the structural tax reduction policy,the promotion of capital formation,the encouragement of technological innovation,and the enhancement of the endogenous impetus of economic growth.Third,we should make great efforts to adjust the proportion structure of tax revenue,gradually increase the proportion of direct tax to the whole tax revenue,and reduce the dependence of the Finance on the indirect tax revenue.Fourth,accelerate the implementation of personal income tax and enterprise income tax reform,give full play to the role of automatic stabilizers of personal income tax and the investment regulation of enterprise income tax.Fifth,we should pay attention to the construction of local tax system and create a fair and open economic environment so as to achieve efficient allocation of production factors in the flow.