Some Researches On Perfecting Chinese Local Tax System

Local tax system belongs to public finance management system. The central government and local government are the main body of it, and local tax is its object. Generally speaking, perfecting local tax system include four contents:1. setting the local tax system reasonable; 2. establishing reasonable scale and proportion of the revenue of local tax. 3. dividing the tax power reasonable. 4. establish efficiency collecting and management system of local tax.Under market economy, the system of tax division (SOTD) is the only way to criterion the distributive relationship between the government. The key of the system of tax division is to distribute financial revenues between the central and the local government in order to ensure the two level governments has to have stable revenue recourse. Since the reform of tax division system in 1994, our country has systematically fixed relatively the financial allocation relationship between the central and local government by primarily setting up the system of tax division. In ten years, we have made great achievements in building our local tax system. The total revenues of local tax kept growing, the special collecting and management bureau for local tax made the collecting and management efficiency, the enthusiasm of local government improved, all of these boosted the local economy. But at the same time, because the reform of tax division system is under the condition of preserving thebenefit that already existed, it considered too much about the centralization of state power for the central government, so there are so many problems left to be resolved. With the development of our economy, the problems has not been resolved but became worse and worse. It is bad for the development of local economy, and is bad for the building of our canonical system of tax division. At that background, how to perfect the local tax system became a hotspot.This paper discusses how to perfect the local tax system in three aspects: the perfecting of local revenue system, the perfecting of the structure of local tax; the perfecting of the division of tax power. In every part, the discus begins with the sum up of the status in quo and the problems of our local tax system; then it analyses comparatively oversea local taxes in sample countries in an aim to grasp both theoretic practically the footstone in studying Chinese local taxes. At last, on the basis of standard analysis and practice study combing the real situation in China, it designs a structure necessary to reform and improve the state' s local tax system.