The Research Of The Local Tax System Reform In The Institutional Change

After China carried out the tax reform in 1994, China has established the basic frame of local tax system . It insures the steady increase of financial income especially of central government financial income and it also accelerates economic high- speed development .But along with our country's various reform to go further ,the current local tax system also emerges some disadvantages and problems which restrict the reform to realize it goals . So we should reform current local tax system, promote economy to develop comprehensively by building a scientific ,high-speed ,strict local tax system. This thesis reviews all the local tax system's variances after the foundation of PRC from the aspects of institutional economics . Then has a system analysis of main problems in present local tax system. Finally raises the elementary concept and systemic arrangement of reforming and perfecting local tax system . The whole thesis is made up by three parts :First part is to review the history of local tax system's changes . After briefly introducing all the local tax system's changes in planned economy period from the foundation of PRC and the economy transformation period . We analyses the routes of all the local tax system along with the changes of social economic system , financial managements system reform and local tax system's changes . At last , we apply the Institutional change theory to summarize five changing features of local tax system :(1) It's a result of gaming central government and local government .(2) Generally speaking ,changes has no law to go according with .(3) It exists the Path dependence obviously .(4) It takes the form of gradual reform .(5) Institutional supply excess and institutional supply shortage exist together .The second part focuses on describing the main problems of current local tax system and tries to explain the reason that local tax system has low efficiency by using the property rights theory of Institutional Economics. It also points out other existing problems of local tax system . And the problems are that :local tax system power concentrates more to central government ,the local government can't play its role well ; local control over wealthy and affair right are not unitive , the extra-budgetary charge deluge ; the partition and management of category of taxes are not accordant with the adscription of tax incomes ; the local tax system is not reasonable ;the system of local tax law is not perfect.