Speculation On The Taxation Power Division Between The Central Government And The Local Government In China

Since 20th century, by government's strengthened interference towards economics, society and welfare, centralization of state power was formed between Occident central government and local government. However, by the development of social welfare and democracy, a strong tide of division of power has come into force among local governments. Thus, these two trends in taxation power division coexist in those marketing countries. Because of the long-existing problems in politics and economics, such trend also lies in Chinese marketing economics building. The key to centralization and decentralization is not which trend should be taken but the equilibrium between the two trends. Unilaterally Stressing of the former or the later is unwise. Centralization, unlike the traditional meaning, should be based on that central government fully respects the legal status and autonomy of local government. Decentralization, on the other hand, should precondition the securing the central government regulating authority. Only when central government and local government, according to the law, show their respective enthusiasm in taxation affair, can a new rule of gambling and chess between the two governments be set up, which ensures a both-win situationBy comparing the theory of taxation power division in homeland and overseas, the author points out the defect in the division between central government and local government. By using the foreign advanced model in the taxation power division, the author brings forward his viewpoint that the trend of taxation power division should focus on moderately legitimate centralization and decentralization. In order to fabricate a rational model of taxation power division, the author indicates six suggestions, of which, the taxation power and the affair power should be compliant with each other, and the regal restriction system should be promoted.