Study On Tax Burben And Development Of Regional Economy

Revenue roots in economy and also counteracts economy .Since revenue is a lever of economy, rational tax burden promotes development of regional economy. Chinese economy has developed quickly since tax revenue system was devided into two parts . But because of many factors such as geographic conditions, regional advantages, national macro-regulation policies, tax system, etc, regional economy and tax burden became lopsided obviously .So how to utilize tax policy to relief tax burden and promote regional economy is a very important problem, which is also an important problem for all different levels of governments especially local governments to solve instantly.The basic theory of this article is macro-regulation of economy by revenue . Firstly, the author analyzes the importance of tax's promotion to regional economy development, derives that revenue is an important method to promote regional economy from introducing experience and method of promotion of regional economy. Secondly, theoretically analyzes the relationship between tax burden and regional economy and six factors of regional tax burden, then puts forward a tax burden standard which can prompt regional economy rapidly, i.e. giving attention to both regional economy increase and revenue optimization. Thirdly, by demonstrating tax burden and economic development of eastern ,central and western region., put forward my viewpoint: the best macro-tax-burden is about 20%, thereinto the eastern region should be higher (18-22%), the central and western region can be lower (15-18%), finds the reasons of the economic imbalance ,which include finance income and outcome of local government, macro-policy, regional economic and industry structure, ownership structure, the level of tax collection and administration, the active scheme of distribution besides natural conditions and regional advantages. Lastly ,draw a conclusion .That is :on the one hand, central government should make reform of taxation system ,enlarge the fund and policy support(especially policy support) for central and western part of China ; on the other hand, local government should not always depend on the central government, they should strengthen their own construction, order the government function, reduce finance expenditure, clarify and order non-tax revenue ,utilize tax privilege reasonably, consummate investment environment, etc. Then they will reduce tax burden and get an ease and nice investment environment, which is beneficial to absorb external fund, remain exisiting fund ,prompt regional economy rapidly.