Study On The Rural Tax-fee Reform Of Inner Mongolia

This dissertation applies positive analysis approach to analyzing the rural tax-fee reform issues and causes in Inner Mongolia with the intention of presenting the policy measures. It indicates that on the one hand it is historically necessary for the society to reform, and also it is possible to adjust the production relationship and increase the social production capacity to reach furthermore advantage and prosperous epoch. On the other hand, it is seemingly general phenomenon of every Tax-fee reform that the new tax or fee items will appear following reforming the old tax system. Through analyzing the author concludes that primary achievement during the reform of rural tax-fee in Inner Mongolia included reduction of Tax-fee burden on peasants, normalization of allocation relationship among the state, collectivity and peasant, improvement of relationship between the government officials and peasants, avoidance of rural social conflict. Nevertheless, the new rural tax system also brings some new issues: unfairness of the new tax burden, debts and fiscal gaps of country and village, and the supply of rural public goods, such as rural compulsory education etc.. In this research, the author points out that the county or village-town should take great efforts to reduce its budge deficit itself. They should not rely too much on the transfers and payments from upper governments. Some small village-town should be combined into a larger one, some schools in the rural should be more concentrated and some part-time teachers should be laid off and so on. All of those will help to reduce the population afforded by the grass-root and help to strengthen fiscal power in the rural to resist revenue declination during the Tax-fee reform. And to fully solve the problem of rural taxation, there must be a redefinition of local government responsibilities. Local governments should be set up as well-function public finance systems with a corresponding organization structure, so that local governments can change their functions from implementing higher-level government regulations to mainly providing local public goods.