China's GDP Growth With Tax Growth Relations

Since reform and opening-up, China's economy grows with high speed, the average annual growth rate in above 10%. Meanwhile, China's tax revenue criterion with more rapid growth, especially from 1997 to 2008. Revenue growth rate has been faster than GDP growth. As is known to all, tax income from GDP, and with the tax system, tax collection level and relatively stability, so I think, tax revenue of GDP should also relatively stable, so, GDP growth and tax growth should also be roughly proportional, and its fluctuation should not beyond a reasonable range. In debating tax increase dramatically faster than GDP growth reason literature, a great number of people think that tax revenue growth faster than GDP growth rate is normal phenomenon, for a long time because of several reason, but since the second half of 2008 economic crisis in our country tax growth speed is slower than economic growth trend. GDP growth slowed, tax revenue growth is slowing, and corresponding tax growth speed decreased significantly faster than GDP growth rate of decline. The new case of tax revenues growing faster than GDP growth is not a normal, and the more impossible for long-term sustainability. I think that tax revenue of GDP in normal should remain stable, and in a very special period can appear larger fluctuation. While China's growth vary too large, the main reason is the statistical data of late adjustment range is too big. In view of complex relation between tax revenue growth and GDP growth this paper can't expect to draw a absolutely accurate conclusions, but only hope that through this paper discussed process, determine the tax growth GDP growth to the important role. Meanwhile I try to point out that the "only GDP" theory is harmful to economy development, for further research of the relationship to lay the foundation.