The Study On Tax And Economic Growth

The impact of tax on economic growth is to be studied in a systematic way in this academic paper. As for analytic methodology, the combination of normative analysis and the mix of qualitative and quantitative analysis characterize the paper. The introduction of the analysis through game theory and international comparison makes various suggestions on tax policy possible. This academic paper consists of four chapters, including conceptual framework, empirical evidence, and conclusion and policy suggestion on the whole.Chapter 1 investigates the effects of tax on the equilibrium output in traditional income-expenditure model, which shows the inner relationship of tax and economic growth. In the latter part, it studies the impact of taxation on economic growth on the side of deadweight costs and the efficiency of taxation.Chapter 2 focuses on the impacts of taxation on economic growth in China. It applies empirical analysis on the study of the overall revenue and economic growth and the effects that the revenue has on individual economic factors. And it mainly focuses on the discussion of the rational scope of the macroscopic tax bearing by means of international comparison and the comparison between different regions in China. What characteristic of China is its relatively low budgetary Macro-tax burden accompanied with the high-proportioned extra-budgetary fee, which actually aggravatesthe tax burden. Other than the disequilibrium in structure, the rate of macro-tax burden varies among different regions, which makes the reform of tax system an urgent task in China.Chapter 3 studies the tax evasion, which covers the basic analysis and various effects of tax evasion in China, as well as the game theory on tax evasion. As in the empirical part, the tax evasion in a typical area - the Electronic Business in China is studied through international comparison. And some suggestions on tax policy are given as a conclusion.Chapter 4 refers to tax reform to accelerate China economic growth. The theory of tax design path is introduced, the effect that the tax structure of China has on economic growth is studied, international tax reform is compared, and some suggestions on China tax reform are offered.