Division Of Rights And Expenditure Responsibility Between Central And Local Governments From The Perspective Of Sustainable Development Constraints Macro-tax Burden

Macro-tax burden,as the focus of attention for the government,scholars and the public,is directly related to the national economy and people's livelihood,and influencing the prosperity and the stable development of the country.In recent years,China's high macro tax burden has severely constrained its economic growth,transformation and upgrading,which also goes against the ideology of sustainable development.The reasons for the abnormally high macro-tax burden could be illustrated as follows: after the reform of the tax distribution system,the distribution of tax power centralizes to the central government and tends to be standardized;however,the reform of the division of powers is still at a standstill,involving such problems as the excessive scope of government's powers,the serious overlapping of intergovernmental powers,the inappropriate division of powers and expenditure responsibilities,and the lack of rationality and scientificity of the division of powers,which therefore lead to the sinking of powers and expenditure responsibilities accompanied by serious financial vertical imbalance.In addition,the huge financial gap generated by rigid system of transfer payment,prompts the local government to grab the hand to seek financial resources from the tax revenue,increase revenue through the form of land finance and arbitrary charges,and ultimately contribute to a high tax burden.Hence,restricting the macro tax burden to a reasonable interval,and scientifically and rationally dividing the responsibilities between the central authorities and the local governments are the key link to solve China's financial difficulties and deepen the reform of the financial system.It is the only path to effectively reduce the macro tax burden and promote the sustainable development of the country.This paper is divided into four parts.The first part has to do with the international comparison.From the perspective of the differences in terms of national structure and economic level,this paper compares the division modes of intergovernmental powers of the United States,Britain,Russia and Mongolia,and expands the four countries to 81 countries,sums up the commonness and characteristics of the division of the central and regional powers of different types of countries,and extracts some experience and enlightenment.The second part involves comparative analysis on history and current situation.This paper analyzes the historical changes and practical difficulties of the relationship between the central government and the local governments,discusses the current situation and international comparison of the division of powers and expenditure responsibilities between the central government and the local governments,and points out the direction for the reform of the division of powers between the central government and the local governments.The third part focuses on theoretical and empirical research.In the theoretical analysis,the concept of sustainable development is defined,and Barro model is used to analyze the influence mechanism of fiscal expenditure decentralization and fiscal expenditure structure on sustainable development.When it comes to the empirical study,entropy method is used to build sustainable development index,and transnational data is used to test the influence of fiscal expenditure decentralization and fiscal expenditure structure on sustainable development,and Lind-Mehlum method is used to estimate the impact of fiscal expenditure decentralization and fiscal expenditure structure on sustainable development.The optimal value of the financial expenditure ratio of the central government provides a reference for the re division of central and local powers and expenditure responsibilities.Finally,the central and local authorities and expenditure responsibility should be re divided.From the perspective of sustainable development constraining macro tax burden,combined with international experience,reality and the results of theoretical and empirical research,the four budgets are respectively launched.Firstly,the relationship between the government and the market is clarified,and part of the power is transferred to the market,and then the reconstruction scheme of the central and local power and expenditure responsibility is formulated as well.The two possible innovations could be illustrated as follows:(1)Re-divide central and local powers and expenditure responsibilities by drawing on international experience and restricting macro tax burden based on sustainable development.On the one hand,the macro tax burden,fiscal expenditure,and the power and expenditure responsibility between the central government and the local government should be studied in a unified framework.There are two problems in the existing literature about the division of government's power.For one thing,it could only stagnate at the level of qualitative division of powers,while fail to go deep into the level of quantitative division of expenditure responsibility,which makes the division of powers and that of expenditure responsibility stay in a split.For another,it would be impossible to effectively solve the problem caused by abnormal high macro tax burden,for the reason that the upward or downward planning of powers and expenditure responsibilities cannot change the total fiscal expenditure,and thus cannot reduce the macro tax burden.Therefore,this paper puts the macro tax burden,fiscal expenditure,administrative power and expenditure responsibility into a unified framework.First,this paper refers to the reasonable range of macro tax burden under the constraint of sustainable development measured by predecessors,and then delimits the boundary between the government and the market.Besides,it transfers part of the government's administrative power to the market,and then divides the administrative power and expenditure responsibility of the central and local governments in various fields.Finally,it ends up reducing fiscal expenditure and macro tax burden to a reasonable range.On the other hand,the international comparison of this paper is quite different from those in the existing literature.First,the second-hand data of international database or policy documents of sample countries are often used for qualitative analysis or policy interpretation in the existing literature of international comparative research.However,this paper collects detailed financial expenditure data from the websites of the Ministry of Finance and Statistics Bureau of the United States,Britain,Russia and Mongolia for quantitative analysis;secondly,the existing literatures are often only case studies,and lack of classification and comparison.According to the differences of national structure and economic level,this paper divides the target countries into four categories.On the basis of case study,the number of samples is expanded to 81 countries and classified and compared.(2)Study the relationship between sustainable development and fiscal expenditure decentralization by combining theory and empirical research.The existing literature of fiscal decentralization pays more attention to the problem of economic growth and ignores the problem of sustainable development.In the part of theoretical analysis,it is worthwhile to note that Barro model is used to define sustainable development as the maximization of the sum of intergenerational utility,which is included in the central and local fiscal expenditure to study the impact of fiscal expenditure decentralization on sustainable development.The results show that the decentralization of fiscal expenditure has an inverted "U" relationship with sustainable development,and the optimal proportion of local fiscal expenditure in the perspective of sustainable development is ?_l~*=?/(?+?).As for the possible innovations in empirical research,this paper firstly constructs a sustainable development index consisting of three dimensions,that is,economy,resource environment and society,and also,it uses transnational data to conduct empirical test,therefore draws the conclusion that fiscal expenditure decentralization and sustainable development show an inverted "U" type relationship;secondly,it further tests the inverted "U" type relationship through the Lind-Mehlum method,and estimates the most sustainable development perspective based on the inverted "U" type relationship.Finally,it is found that the proportion of local financial expenditure in China is too high,far higher than its optimal value,which is not conducive to the sustainable development of the country.Therefore,this paper focuses on strengthening the central authority and increasing the proportion of central financial expenditure,especially in compulsory education,health care and social security.(3)A Study on the division of public health rights and expenditure between central and local governments,based on the background of COVID-19.The COVID-19 has exposed the shortcomings of the public health system and the malpractice of the division of right and expenditure in China.Thus,this paper aims to carry out relative study based on this background.Firstly,this paper defines the concept and content of public health right and expenditure in China by combing the existing literature,financial accounts,relevant health laws,regulations and policies.Secondly,we find out the key elements of improving the public health system and the important direction of rights division through concluding the epidemic path of COVID-19.Thirdly,this paper puts forward some policy suggestions to improve the division of public health right and expenditure between central and local governments based on the analysis before.