Optimization Of Chinese Tax Revenue Structure

Tax revenue structure is the core of a tax system, whose inner proportions will reflect directly the structure and function of a country's tax system. At present, the revenue from tax in China depends greatly on turnover tax, which has distorted seriously the allocation of recourses and hampered the fulfillment of the tax's adjusting function to macro economy. Based on this present condition, this paper analyzed its causes from following aspects as tax revenue system, contradiction between fiscal revenue and expense, and economic growth level. Then the author pointed out the disadvantages of this unbalanced tax revenue system and the necessity of its reform from both domestic and international requirements. After investigating the evolving of tax systems in the world and the rising of income tax in developed countries, the author suggested the way to optimizing Chinese tax revenue structure is to set up a two-main-body tax system with turnover tax and income tax. The conceived outline is to augment the income taxation, to adjust the comparative proportion between turnover tax and income tax, and hence to change the distorted tax system and set up a two-main-body one, in which turnover tax and income tax can function congenially and complementally.This paper tries to have some innovations in the following aspects: (1) the main cause of our tax revenue depending mainly on turnover tax is short of innovation in system; (2) it's innovation in system to impel the rising of income tax in developed counties, which is a good example for us to learn from in the optimization of our tax structure ;(3) the main function of turnover and income tax should be separated according to their characters; (4) the reforms in turnover and income tax should be taken simultaneously, congenially and complementally, although the former will be more progressive while the later more abrupt; (5) the essential function of tax is to raise revenue, but its fair-promoting effect is much more obvious in disbursing than in collecting.