Central And Local Relations Under Tax Sharing System

The central and local relations is essential issue which a majority of countries in the world can not avoid. How to handle the relationship between them is critical to the rise and fall of a nation, the development of economies and the progress of a society. Recently, all countries in the world are positive to adjust the central and local relations to meet the requirements of social economical development. Living in such a time ,we must look upon the issue from a worldwide extent so that we can promote the adjustment of a nation's central and local relations more excellently. The essay stands mainly on the point of tax sharing system and takes the central and local power distribution as main line to study the central and local relations in FranceFirst, the essay reviews the tax sharing system forming background and its development, points out that tax sharing system was formed during Napoleonic period and has experienced three periods before it develops into the modern tax sharing system. Following, it explains in details about the present conditions and characters of the system; the distribution of the power and the allocation of the finance resources of the central, local and sublocal governments, and points out the profound impaction the changes of finance power and finance resources put on the central and local relations.. Furtherly, it analyzes the factors which influence the central and local power distribution under the tax sharing system. The essay regards that the power distribution of the two is according to the government function theory and the public products layer theory; and at the same time it is influenced by the national conditions and environments. Based on this, it advancedly probes that the present tax sharing system s implementation turns the central and local power distribution to be more suitable and promotes greatly the local s activities. The future central and local relations trend will be the continuityof the decentralization under the centralization and the consulting cooperation between the central and local government. At last, according to the above, the essay points out the things used for reference of the France central and local relations after adjustment under the present tax sharing system.