The Effect And Strategy Research On Chinese Local Government's Tax Competition

Summary of competition between the Government is a global problem. The Government and local government tax competition is an important part of the competition among the local government and Related Means Use taxation means around the tax resources and economic resources of the competition. In recent years, the national economy has been the rapid development of national income as a "cake" be kept. Therefore, the competition among local tax resources and economic resources, it has become increasingly frequent and intense. The situation in the norms of conduct of the local government, more and more seriously damaged the image of the local government and the other side of the national economic development and social progress in material damage. Based on this, the article in the context of the local government tax competition between the reality of the local government to study in depth in order to solve practical problems in the tax competition.By the mothod of combination of normative analysis and positive analysis, this article use the theories of Publice Administration and Economics to analyzes the positive and negative effects of tax competition among local governments from the level of theory and practice. According to the analytical result, we can see that effects of tax competition among local governments is mainly negative, which aggravate the regional economic disparity, initiate the structural unbalance between public expenditure and public service, disturb the order of taxation allocation and result in tax erosion. Therefore, realistic steps should be taken to solve the problem of tax competition among local governments in our country. At the same time, this article uses the theories of Publice Choice and Publice Finance to analyze the internal and external causes to create the tax competition. From the analytical results, we can see that the government officials'persuing of their own political benefit and the governments' persuing of independent economic resource are the internal causes, whereas the "promotion pressure" from unreasonable " assessment index for achievements of official career", "expenditure pressure" from incomplete tax distribution system, "administrative intervention space" rising from institutional defect of current tax law and "indirect pushing "from imperfect administrative supervision system constitute the external causes. Finally, according to above research results, this article gives countermeasures and suggestion to handle the problem of tax comepetition among local governments.