Effect Of Tax Rebates Acting On The Regional Economic Development And Analysis Of Tax Rebates' Save Or Abolition

Since the reform and opening up, Chinese economics have been developed rapidly, the people's life growing dramatically, however, the economic gaps of various regions have been expanded and become a very important problem, so for China's economic development, the economic development challenge becomes the important problem, the pursuit of the region economy coordinated development is inevitable. In recent years, scholars are gradually paying much more attention to the government transfer payment system because of the following reasons, on the one hand, with the reform of the system by the central government, the central government has gathered the most money, and on the other hand, financial transfer payment system is the essential problem solving regional disparity. In the current study, some scholars put tax rebate and transfer payment as parallel indicators,some scholars put tax rebate in the financial transfer payment as a separate component,different scholars have different opinions. In this paper, tax rebate was viewed a part of transfer payment, we study the effect of tax rebate on the regional economics, and according to other countries'exercise, we analyze abolition or save of tax rebate and make recommendations.The central government began to implement fiscal transfer payment with the tax-share management system in 1994, the Chinese government financial transfer payment system start building. From a practical point of view, tax sharing system reform is deepening performance of economy system reform of Chinese, and the Government hopes to gradually perfect China's financial system, the using of financial transfer payments to achieve a balanced regional differences. However, at present, China's general economic develop rapidly, and regional economic and financial gap was increasing, visible rebate system in practice is not ideal. The financial transfer payment is not ideal in practice, there are still some problems, these problems make the transfer payments the effect of balanced development of regional economy has been weakened, the equalization of transfer payments are not effective. Tax rebates are still not standard and not scientific. As China continues to improve the tax sharing system, a scientific intergovernmental transfer payment system is urgently needed.This paper mainly studies the central government to the local governments through tax rebates, according to Chinese present situation, we discussed the tax rebates cause the difference of economic growth using empirical analysis so that we can draw the conclusion that the various regional economy differences is spread or convergent. We can put forward to the corresponding suggestion according to foreign transfer payment system.