| Economy determines taxation and taxation sets reaction on economy. Economic factors play a decisive role on taxation in macro total volume and structure. In recent years, under the circumstances of tax burden maintaining unchanged, there is a phenomenon that tax increase faster than economy. Through the qualitative analysis about relativity between taxation and economy and authentic analysis of related targets of JiLin province, the essay indicates the basic reason that tax increase faster than economy and the less relativity about taxation and economy of JiLin province and so as to prove the tax function trend in rejuvenation stratagem of old industrial base. It is divided into three parts: â… .Qualitative Analysis of Taxation and Economy 1. The relationship between GDP and taxation. ( 1 ) GDP has highly consistence in the requirement of accounting unit with tax revenue. Taxation includes different industries of production and non-production. The two targets have consistency in the scope of accounting unit. (2)Taxation and GDP structure have partly correlation. So we can find the qualitative basis for building mathematical relation between tax revenue and GDP. (3)Total volume of taxation is highly related with GDP. The relation of taxation and GDP can be expressed as: T=a+bGDP =342.61+0.136GDP. When we increase 10billion of GDP, the tax revenue rises 1.36 billion correspondingly. The scale of GDP has a great influence on tax total volume. (4)Tax increase has less relation with GDP's growth. The price growth rate of GDP has less correlation with current price growth rate and tax growth rate. The basic character of tax increase be determined by economy targets outside GDP total volume and great variations of economy structure. (5)Quality of GDP had an important influence on the tax revenue. A virtuous increment increased in proportion to total amount of GDP. (6) The change of GDP structure is the main reason for deciding the tax increase. Tax burden makes up the proportions of GDP increase compared with relatively high Second and Third industries. For the proportion of consumption rise, the tax revenue increase. The change of four items structure of GDP in income law had a directly influence on taxation .The proportion of high tax burden area increases so the total level of macro burden rise and the tax revenue increase rapidly. 2. The relationship between consumption and taxation. The increase of the consumption may stimulate the economy growth and promote tax increase. The increase of consumption rate can improve tax burden. 3. The relationship between investment and taxation. The investment directly produces regulation tax on investing directions of fixed assets. Through withholding, we directly reduce the increase tax revenue. The more the marginal consumption trend increase, the higher investment multiplier will be and the same of GDP and taxation. The investment makes the inventory increase and reduce the tax revenue. Because of the increase in investment, the macro tax burden drops. 4. The relationship between the import and export and taxation. From import and export, Influenced by the total amount of the two sides and tax rate, we may constitute different tax result. From the structure of the import and export, the more the high tax rateproducts import, the more drawbacks we get. The custom agency tax decrease and comprehensive tax rate become lower. 5. The relationship between the price and taxation. In short term, taxation has priority increase character. The increase of short-term price can cause tax burden rise. In the long-term, the result of price increase leads to inverse adjustment of production and marketing. Inventory increases and tax burden falls. Through analyses, we can see although there is highly relation between the tax and GDP total amount, it has less relation with GDP increase. The changes of economic structure bring about the improvement of economic increment and the phenomenon of preferential inventory. The change of economic structure is the main reason for tax increase. â…¡. Authentic analyses of relativity about taxation and economy of JiLin province 1. The scope of JiLin taxation is rather small, it was 37.187 billion in 2004, it only makes up 1.45 percent of the total income of our whole nation. It is less than proportion of JiLin GDP to our whole nation. 2. Insufficient elasticity of JiLin tax. The elasticity coefficient of JiLin tax was 1.51 in 2004, and 1.2 lower than the nation's level. So the increase of JiLin taxes remains further improvement. 3. Unreasonable tax revenue source structure of JiLin province. Influenced by the economy structure, the old, unreasonable problems become sticking out. The contribution of entire economy to the taxation is rather low. 4. Lower macro tax burden of JiLin province .The macro tax burden of JiLin is 12.6 percent in 2004, and 6.2 percent lower than the national level. The macro tax burden of JiLin in 2004 corresponds to the national level in 1999. 5. Analysis the reason of low relativity between the taxation andeconomy. The change of economic structure is greater than the influence of economic total volume to taxation. Economic structure of JiLin province shows unreasonable so it results in the contribution to the taxation on the low side. â…¢. The Tax function trend in rejuvenation stratagem of the old industrial base in JiLin province The relation between the taxation and economy virtually is a question about how tax allocation promotes the productive force developing as a part of relation of production. In the course of rejuvenation old industrial base of JiLin we should locate the tax function trend exactly and fully develop the promoting function of taxation to economy. 1. Deepening the reformation of tax system and standardizing the financial distribution method. We should accelerate to carry forward the new tax system reformation and build the tax system environment of unification, fairness, standardization and transparency. 2. Optimizing economic revenue source structure and improving the tax revenue construction level, Tax revenue source construction not only use the speed of arranging but also carry out structure adjustment in order to improve contribution rate of GDP to taxation. 3. Implementing the policies of tax preference and promoting the economy developing rapidly. We should make full use of tax preference policies given by the government for the old industrial base and attract investment to accelerate project building and expand the tax revenue size. 4. Improving the tax revenue mechanisms and strengthening financial secure ability. We construct mechanism that tax revenue increase steadily and continuously. At last we gradually improve the taxation proportion in GDP. 5. Reforming the planning arrangement method and improve the taxation planning management. We practice the tax burden rate...
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