Research On The Equalization Of Interregional Fiscal Capability From The Perspective Of Reasonable Attribution Of Tax Base

Based on several important reasons,it is important and urgent to study the equalization of inter-regional fiscal capacity from the perspective of rationalization of tax base division—this article calls it "reasonable tax base attribution".From the practical perspective,the irrational attribution of the tax base directly affects the equalization of inter-regional fiscal capacity,and indirectly affects the equalization of public services.The current tax-sharing system in our country focuses on the division of income between the central and local governments and between different regions(for example,tax revenue sharing,transfer payments).Little attention is paid to the upstream tax base that generates tax revenue(that is,whether the tax base is reasonably attributable to the jurisdiction where it should be located and returned to the appropriate taxation place).When the tax base belongs to the wrong jurisdiction,the effect of the tax income distribution and transfer payment system will be greatly reduced.With the vigorous development of the digital economy,the inherent characteristics of the digital economy will exacerbate the problem of tax base transfer.The irrational attribution of the tax base will pose an increasing threat to inter-regional equalization efforts.From the theoretical perspective,fiscal theory urgently needs to keep pace with the times to deal with increasingly complex governance challenges.Constructing and perfecting the tax base division theory to enrich the "tax and fiscal system theory" is a particularly critical aspect.Because the rational division of the tax base is a bridge between the "tax system" and the "intergovernmental fiscal system",that is,meaningful tax division and its functions can be better realized under the premise of reasonable tax base attribution.China’s inter-regional fiscal gap is very large.From 2000 to 2018,our country’s local per capita fiscal income difference coefficient(excluding transfer payments and tax refunds)fluctuated between 70% and 115%.In 2018,the jurisdiction with the highest local per capita fiscal revenue(Shanghai)was 8.91 times that of the lowest jurisdiction(Gansu).The ratio of the per capita fiscal revenue of the five highest provincial jurisdictions to the five lowest jurisdiction is 5.1:1.The inter-regional fiscal differences are very severe,which determines the importance of fiscal equalization research.However,the existing research has always focused on the two aspects of "tax revenue division" and "transfer payment".Among them,"tax base division" is not included in the concept of "tax division",so that the research on "tax division" largely lacks the consideration of "tax base division".At the same time,the research on the division of tax bases is not sufficient.At present,it has not yet developed into a systematic theory of "reasonable attribution of tax base".The unreasonable division of the tax base has a great influence on the equalization of inter-regional fiscal capacity,but the relevant researchhow to influence,the degree of influence,and the research on the correction plan are insufficient.In view of this,this paper studies the impact of "tax base division" on the equalization of interregional fiscal capacity under the current background of China.What kind of tax base division rules are most helpful to improve the effect of fiscal equalization and to explore the way of interregional fiscal capacity balance from the perspective of reasonable ownership of the tax base.This paper will focus on answering four questions:(1)what kind of rules can realize the reasonable attribution of the tax base,and then realize the equalization of interregional fiscal capacity;(2)what are the effects and limitations of China’s current rules of tax base division on the equalization of interregional fiscal capacity;(3)how much is the impact of unreasonable attribution of tax base on the inequality of interregional fiscal capacity?(4)how to design the specific path of reasonable ownership of tax base in order to promote the equalization of interregional financial capacity.In order to answer the above questions systematically,this paper first obtains the evaluation criteria of the reasonable ownership of the tax base based on the public choice theory and the basic principles of taxation: the principle of interregional tax fairness,the principle of regional economic efficiency and the autonomy of local finance.This paper explains the "acceptability" rules of reasonable attribution of tax base,which meet the above evaluation criteria-origin rule and destination rule.Secondly,it collates the fact that China’s interjurisdictional tax base does not achieve "reasonable ownership".This paper analyzes how much the primary distribution problem of unreasonable ownership of tax base distorts the secondary distribution in the sense of income sharing and the third distribution in the sense of transfer payment,and then leads to the horizontal imbalance of fiscal revenue capacity and net financial interests.Finally,it puts forward the construction path of fiscal equalization reform system from the perspective of reasonable ownership of tax base.The main contents of this paper are as follows:The first chapter is the introduction.From the research background of the current equalization of interregional fiscal capacity and the transfer of tax base in China,this paper puts forward the main problem of this paper,that is,to solve the primary distribution problem of reasonable ownership of inter-jurisdiction tax base is very important to promote the equalization of inter-regional fiscal capacity.On this basis,the logical ideas,research contents and research methods of this paper are analyzed.The second chapter is the meaning,theoretical basis and related practice of reasonable ownership of tax base.The meaning of the reasonable ownership of the tax base mainly answers what the reasonable ownership of the tax base is.The theoretical basis mainly includes the theory of public choice and the theory of basic principles of taxation.Based on the theory of public choice,this paper explains why the tax base should belong reasonably,that is,the importance and necessity of the reasonable ownership of the tax base.Based on the theory of basic principles of taxation,this paper demonstrates what is the evaluation standard for the reasonable ownership of the tax base,and demonstrates the rationality,science and importance of the evaluation standard.The relevant practice mainly expounds the generally applied rules of "acceptability" of reasonable ownership of tax base,that is,source rule and destination rule,which meet the above evaluation criteria.The third chapter is the typical facts and reasons of the unreasonable ownership of the tax base among Chinese jurisdictions.This paper calculates the severity of the deviation between China’s tax base and tax source since 2000,describes the basic fact that the tax base does not achieve "reasonable attribution",and points out that the use of bad rules to distribute the tax base(the distribution of income tax base according to the rules of registration and the distribution of circulation tax base according to the rules of place of production)is an important reason for the deviation between tax base and tax source.The fourth chapter analyzes the impact of the unreasonable attribution of the tax base of the primary distribution on the secondary and tertiary distribution.It weakens the effectiveness of the secondary distribution system in the sense of income sharing and the tertiary distribution system in the sense of transfer payment.This paper calculates how much the primary distribution misalignment(tax base transfer)distorts the secondary and tertiary distribution in the sense of tax base distribution.And how much can the effect of secondary and tertiary distribution be improved when the agreeable rules are used to distribute the tax base in the initial allocation.The fifth chapter is the in-depth analysis of the influence of unreasonable attribution of tax base,which mainly includes the welfare effect and economic effect of unreasonable attribution of tax base.The previous article analyzes how the unreasonable attribution of the tax base aggravates the imbalance of horizontal fiscal revenue capacity,and this part analyzes how the unreasonable attribution of the tax base aggravates the horizontal imbalance of "net financial interests".This paper calculates the impact on the imbalance of interregional net fiscal interests and how much interregional net fiscal benefits can be improved by using desirable rules to distribute the tax base.At the same time,with the help of the tax competition model,this paper explores the mechanism of the deviation between the tax base and the tax source affecting economic growth,and empirically tests the basic fact that the unreasonable attribution of the tax base affects economic growth through the fixed effect panel regression model.By analyzing the influence of unreasonable attribution of tax base on economic development,this paper establishes a comparative circular logical chain of tax deviation,financial deviation and economic growth deviation.The deviation between tax base and tax source will aggravate the difference of interregional financial resources and economic growth,and the difference of economic growth reacts on the deviation between tax base and tax source.The Matthew effect cycle makes the stronger the strong and the weaker the weak,and the differentiation of interregional financial capacity continues.The sixth chapter is the international experience reference and reform agenda.By introducing and analyzing the formula distribution method of American enterprise income tax,the destination principle of EU VAT and the reverse collection mechanism of EU VAT,and combining with the actual situation of our country,this paper puts forward a new agenda of fiscal equalization reform based on the reasonable ownership of tax base.This is the focus and foothold of the full text.The reform of fiscal equalization based on the reasonable ownership of the tax base strives to build a coordinated tertiary distribution mechanism: the primary distribution is to distribute the tax base among regions with destination rules and source rules;the secondary distribution is the base of "territorial income" to adjust income sharing;on the basis of adjusting the primary and secondary distribution mechanism,the tertiary distribution is to reorganize the tax rebate and transfer payment into an equal-developmental transfer payment model.This paper draws the following main conclusions and viewpoints: the existing "bad tax base distribution rules" inevitably create the "adverse effect" of the initial distribution because it violates the core principles of the financial system reform.In the case that the "inverse effect" of the primary distribution has not been corrected,the secondary distribution in the sense of income sharing and the third distribution in the sense of transfer payment are bound to be ineffective.It will lead to the horizontal imbalance of fiscal revenue capacity,net financial interests and economic development,and aggravate the inequality of interregional fiscal capacity.Therefore,the adoption of acceptable rules to distribute the tax base to correct the "adverse effect" in the initial distribution should be included in the priority agenda of the financial system reform as soon as possible.At the same time,tax sharing and transfer payment system are used to realize the equalization of interregional financial capacity.This paper attempts to make some innovations in the following aspects:First,the innovation of research perspective.Scholars at domestic and abroad pay more attention to the equalization of interregional fiscal capacity,but there are few studies on improving the equalization of interregional fiscal capacity from the perspective of reasonable ownership of the tax base,especially the localization research according to the actual situation of our country.Therefore,it is innovative to study how to promote the equalization of interregional fiscal capacity from the perspective of reasonable ownership of tax base.Second,the innovation of research point of view.This paper holds that the reform of fiscal equalization based on the reasonable ownership of the tax base should proceed from three aspects: the first distribution is to distribute the tax base among regions according to the rules of destination and source;the secondary distribution is the base of "territorial income" to adjust income sharing;the third distribution is to reorganize the tax rebate and transfer payment into an equal-developmental transfer payment model.In the initial distribution stage,this paper considers not only the traditional economy,but also the tax base transfer of the emerging digital economy.Based on the principle that the rational distribution of direct tax base should adhere to the principle of the place where substantive economic activities occur and contribution factors,a division scheme of income tax base among jurisdictions is designed to provide theoretical basis and technical reference for the follow-up tax system reform.The topic of this paper needs to be further studied from the following three aspects:(1)Origin rules and destination rules help to achieve benefit equity and efficiency fairness,but can not eliminate the "natural" financial capacity differences between jurisdictions caused by different resource endowments,which shows the necessity of transfer payment system.At the same time,compared with the current income sharing methods,source rules and destination rules are a new way to solve the differences in financial capacity between jurisdictions,but they may not be sufficient conditions to solve this problem.Therefore,how to realize the effective cooperation between the source rules,destination rules and the current income sharing methods and transfer payment system is worthy of further study.(2)in the empirical aspect,this paper mainly examines the provincial stage,but there is no more detailed city-level research.(3)because the data under the digital economy model is not easy to be obtained,the quantitative analysis of tax base transfer under the digital economy has not been further studied,and the research can continue when the conditions are ripe.