Research On The Institutional Construction Of Our Country's Tax-sharing System

Most countries with market economy in the world have carried out fiscal tax-sharing management system nowadays. Tax-sharing system is a quite ideal pattern to deal with fiscal distributive relationship of governments in the market economy. As an institutional arrangement, its essence is distributing legislative power, judicial power and justiciary power of tax between the center and the local governments so that the duties can match the financial abilities. In west countries, tax-sharing system has been developed into a fairly perfect and ripe system with one or two hundred years of practice history. It is effective to standardize and ensure fiscal distributive relationship of governments at different levels by tax-sharing system in the market economy.Tax-sharing system has been put into practice thoroughly in our country in 1994 in order to meet the requirement of setting up socialist market economic system .The practice of tax-sharing system makes the fiscal relationship between the center government and the local government systematic, standardized, scientific and rational. Moreover, it is a positive choice for rationalizing the fiscal relationship between the center and the local governments. In fact, it has produced good effect since the reform of tax-sharing system began. It will produce active influence for promoting our country's economic reform and development. However, It is seen that the reform hasn't been as good as it can because it is a transitional system with irregular institutional design, arrangement and has exposed many problems which produced a lot of transaction costs so that the reform effect can't expressed abundantly. For this reason, it is necessary to make further improvement on the tax-sharing system and make further research on how to increase effective institution and how to decrease transaction costs in the practice of the system.There is comparative study for different kinds of tax-sharing system by the use of institution economics theory. It is mainly analyzed in this dissertation for the special institutional defects of our country's tax-sharing system, such as the contradiction between the administrative centralization and the fiscal decentralization, the asymmetry between the duties and the financial abilities, the imperfect transfer rule. It is also discussed for the emphasis of our country's tax-sharing system's institutional construction from the point of decreasing transaction costs which is a new idea and put forward many steps to make further standardization on the system.The way that combines normative analysis with positive analysis is used in this dissertation and the theory of finance, tax, institutional economics, west economics, games is used as well. Moreover, some actual institutional problems are involved. Therefore, to some extent it is difficult to make research and the disagreement between the theoretic advancement and the practical operation is inevitable. However, I hope I can do my bit to help standardize our country's tax-sharing system.There are introduction and four principal parts in this dissertation.Introduction: It is provided for textual research background, research method and the train of thought. Moreover, it is summarized for the inland foreign fruits of the research.First part: Basic theory of tax-sharing system and development in our country. The essence of tax-sharing system is stated. Furthermore, the theoretic basis and detailed content are analyzed, such as the allocation of duties between the center government and the local governments, the basis and the meaning of dividing income, the way of transfers, the effect of different ways. Then, it is introduced entirely for the process ofthe evolvement and development of our country's tax-sharing system from fiscal contract system to tax-sharing system. This is the basic theoretic part in the whole dissertation which offers theoretic foundation for the analysis and the discussion of the later parts.Second part: General analysis of tax-sharing system. There is much analysis about ce...