The Research Of The Fiscal Policy And Tax Policy For Developing West

As a stimulus to promoting a new round of progress in China's economy,Developing West is a typical practice of non-balanced developing strategy in regional economics. However,due to its complicated worldwide system engineering,several big scales of west developing project attempted by Chinese government resulted in failure from the long impact of China's planned economy.Beginning with the theory foundation on policy support extracted from the regional economics and through theoretical analysis as well as practical discussion,this theme argues that an inclined fiscal policy is the guarantee of regional economic growth in west area. As a result,the focus of this article highlights how to evaluate the current situation and existing problems of the fiscal policy and draw up a set of effective fiscal policies.The theme consists of 4 parts. The first part briefs the strategical significance and procedures of Developing West. As narrated in the article,Developing West gets source from dual economic-structure theory,developing-polarity theory and dual geographical-structure theory in regional economics,the main contents of which are to promote the foundation structures construction,adjust economic structures,strengthen the environment construction and develop the cause of science and education. From the stretigecal point of view,it can be divided into 3 stepselementary stage,taking-offstage and merging stage.The second part puts emphasis on the function of fiscal policy in regional economic development. From the theoretical analysis and practical discussion on the inclined fiscal policy that is believed to be able to promote regional economic growth,the basis of fiscal support on Developing West lies as followsbalance the regional economic development,adjust the impartial competions between the east and the west and overcome the limitations of market mechanism.The third part analyzes the status quo and existing problems of the fiscal policy for west region. For instance,insufficient financial input,inefficient investment output and improper taxation policy.In the fourth part,aiming to solve the contradictions,some suggestions are raised to perfect the regional fiscal policy in Developing West.However,there are still two major issues to discuss furtherhow to format a scientific taxation model and a regulated central transferring payment system.