Theoretical Research And Empirical Analysis Of Structural Tax Reduction

Taxation, as a tool of revenue and basic means for fiscal policies, is verysignificant to adjust domestic macro-economy effectively and answer needs of publicmanagement. Tax system is criterion and restriction for taxation behavior. Theory ofoptimal taxation studied much by foreign scholars explained how to choose anddesign tax system which furthest meets expectation of fairness and minimizes socialefficiency losing. Our current tax system is laid foundation for by the taxation reformation in1994 and modified little, combining with economic situation. It worked well for sometime. Along with the establishment and development of socialistic market economysystem, several problems existed in the tax system have to cause our concern.The most noticeable problems are super increase of revenue and overweight oftaxation burden. The paper made use of the improved Niskanen regression equation ofeconomy increase, computed the tax multiplier of our country in recent ten years andgot the negative influence on economy brought by super increase of revenuequantitatively. The paper also constructed investment function of our country,estimated the optimum macro taxation burden made the rate of investment maximizeand provided relevant data consults for our fit taxation scale.After the evaluation of current tax system and analysis of environment oftaxation reformation, the paper brought forward a reformation project of structural taxreduction, among it, the reformation of value-added tax and income tax wereemphases, including value-added tax rate may add a lower tax rate and individualincome tax may consider degression of marginal tax rate. Finally, the paper putforward assistant steps to make the taxation reformation go on wheels.