The Countermeasures To Resolve The Problems Of The Subnational Tax Competition In Our Country

In western federal countries, such as America, Canada and Switzerland, subnational governments have their own fiscal jurisdiction and expenditure responsibilities, reduction in marginal effective tax rate in order to attract in inhabitants, business and capital is an important economic policy strategy to boost local development, and subnational tax competition coming from this has long been a problem to which fiscal scholars pay much more attentions. In our country, before the Reform and Opening-up, the fiscal management has always been a deeply centralized one, in which subnational governments have no their own fiscal interest and tax jurisdiction, so there has been no subnational tax competition whatsoever. Ever since the Reform and Opening-up took place, along with the process of fiscal decentralization, especially the establishment of the tax-divided system, subnational governments have been awarded some power in fiscal expenditure and gotten wide informal discretionary powers in collecting fiscal revenue. So subnational tax competition analogous to the one in western federal countries has come into being. How to acknowledge, evaluate and regulate the subnational tax competition in our country has been an urgent problem put forward. This thesis attempts to use the general theories of subnational tax competition to study the subnational tax competition in our country, and put forth some concrete tentative plans to regulate it.The whole thesis is divided into four chapters: The first one introduce the general theories of subnational tax competition, which includes the definition, the theoretical bases. This is the theoretical foundation of the whole thesis. The second one is the emphasis. In the chapter, the writer has analyzed the actuality of subnational tax competition in our country, including the surrounding and characteristic, the special forms, the competitive effect and the cause of the subnational tax competition. The conclusion is that the subnational tax competition in our country is a harmful competition , and the cause lies in the imperfection of tax-divided system, the rigidity of unscientific taxation planning, the fiscal demand exceeding tax capacity and the...