Research On Tax Policy Of Circular Economy Development Based On Factor Analysis

Since adopting the reform and open policy more than thirty years ago, the market-oriented reform in economic system has brought dramatic change to Chinese society. However, we have to admit the method our economy increases is extensive and the rapid growth we achieved is at a cost of over-consumption in resources and sever destruction in environment. The economical development needs to consume the massive resources, although our country's resources total quantity is rich, but the share of natural resources possessive amount per capita is extremely deficient. Recently, the developed countries, such as Sweden, Denmark, Germany, the USA, or Japan, turn to either developing circular economy or establishing cyclic social vigorously one by one. Learning from international experience, as a new efficient pattern of ecology economy, circular economy can resolve the problem of natural resource exhausting and environment pollution, and it is the only choice to make the economy development sustainable. However, the development of circular economy is a new stage and the new model of the economic development, a variety of policies and systems are needed to coordinate and cooperate with each other. Promotion and encouragement from government is the important assurance to develop circular economy. At present, the main means such as the tax, control, emission rights, and subsidies are used to promote the development of circular economy. As one of the most important policies, the tax policy plays a serious role in the national macroscopic regulation, the reasonable distribution of social resources and social equity. Shandong province as the pilot province of circular economy development in China, it made beneficial exploration in the circular economy development, but also exists some problems that can not be neglected in. Through evaluate the development status of circular economy in Shandong province, the article analyses the relevant tax policy to promote the development of circular economy, and attempts to discover a tax revenue supporting way to promote circular economy development.The article altogether can be divided into five parts:The first part is preamble. This part elaborates the research background and significance of this thesis, and summarizes the current research at home and abroad, points out the defects and shortcomings in literature research, then elaborates this article's research ideas and methods. Finally, the weak links in this article are summarized. The second part is theoretical analysis of circular economy development and tax policy. This part elaborates the general knowledge of circular economy development and tax policy. The author summarizes the theories of circular economy, which was distinct with the traditional model of economic growth in the content, principles, then discusses about theoretical bases for intervention of tax policy, including external effects theory, public product theory and enterprise and individual behavior theory. Finally it introduces the foreign tax policy of circular economy development, and displays the tax policy of America, Holland and Japan etc. from tax preference and tax imposition. Summing up the total experiences taken by every country in developing circular economy, we may obtain the useful inspirations for developing circular economy in our country.The third part is circular economy development and tax policy support condition. Through on-the-spot investigation analysis, this part introduces the actuality of circular economy development in Shandong province and the problems in the development. On this basis, the article analyses the drawbacks of our present tax policy system in promoting the development of circular economy, such as:during the course of promotion and support the development of circular economy for tax policy, it course the shortage phenomena on adjustment and control of tax policy because of shortage of tax types, but also some of the existing tax policies which against development of circular economy, all these should be farther consummated.The forth part is the development evaluation for the circular economy in Shandong province on the base of the factor analysis way. This part put forwards circular economy evaluation target and evaluation principles and sets up the evaluation basic frame of the circular economy index sign system. Using factor analysis way to make the quality synthetic evaluation in view of circular economy development present situation in Shandong province 1994～2008 year, and analyses the main factor which influence the development of circular economy in Shandong province. Through the analysis, reuse index is the most important one in the overall integrated factors, resource index and reduction index list in the second and third place. Hereby the tax policy in Shandong province for developing the circular economy should firstly focuses on the reuse index and resource index, followed by reduction factor.The fifth part is tax policy suggestions to promote the development of circular economy. This part solves the problem, which seeks the tax policy optimization way to promote the development of circular economy. The article proposes a general idea on how to make use of tax policy to develop circular economy, including construct guiding ideology and construction principles of circular economy tax policy system. Then it gradually researches how to choose the tax policy, also gives some suggestions on reform of relevant tax policy.