Coordination Of The Regional Economic Development And Our State Tax Policy

Whether in developed countries or in developing countries, tax policies are considered to be effective measures in solving or reducing the economic developmental distinction among regions. It's well known that, in order to fast develop the economy in the western regions on the basis of constantly strengthening the eastern economy and our national economy, in 1990's our central government started to care about the social problems brought by the unbalanced economic development in western regions. Tax policies play an important role in large scale development in western regions as they do in the eastern. But we must pay enough attention. There are some shortcomings in the tax policies for the large scale development in western regions. In order to reduce the econmic developmental distinction between the eastern and the weatern, enough attention should be paid to the situational economies between the eastern and the western, and systematic regional tax policies should be made. The economic developmental distinction between the eastern and the western should be reduced not by controling the economic development in the eastern regions.This article briefly introduces the situations of our regional economic development, then from the conection between the regional development of economy and regional tax policies explains that the important factor is tax policies in developing the regional economies on balance. Through analizing the theory of tax burden shift and the regional tax policies, as well as the marginal tax rates and real cases of regional econmic growth, it is a double-edged sword: it can promote the development of regional economy and italso can provent its development. To coordinate the develoment of regional economies, tax burn should be further reduced and tax growth degree should be moderate. Last the article puts forward the trend of policy in promoting the coordinate of the eastern and western economis: Combine the function of the governments at different levels with the markets; Put into effect the policy of light tax burden in the backward regions; Integrate the government investment, expenditure shift with other financial and tax policies to support the development ofthe backward regions. Meanushile to the eastern developed regions, promote the tax growth by regulating industrial policies to keep the eastern superiority of economic development. In this way our economic structure will be well promoted and the regional economies will coordinately develop.