Strategies Research On Improvement On The Local-tax System And Enlarging Local Financial Resource

The Tax-share System was adopted in China since 1994. With the development of our socialist market economic, Local-tax System can not adapted to the economic condition. It also affects the Government' s Function, and also works as barrier to the other reforms, so it is urgent to improve our Local-tax System.The article considers the Local-tax and Local-tax System must to be defined normatively. Improving the Local-tax System must resolve three problems which are 1) problem of Right-to-tax,2) problem of Tax construction, 3) how to increase local financial resources.On the countermeasure, researches on the division of the Right-to-tax and construction of the Local-tax have been done deeply. And it is reasonable to consider the entity of administrative power, financial power, and Right-to-tax when divide the Right-to-tax between central and local governments. Accordingly, local government should have the right of legislating tax law. At one aspect of local tax construction, we should pay attention to the main tax sort, innovate the sales tax, business income tax, urban maintenance and construction tax, quicken our step to collect property tax and social security tax.By the Local-tax is the main source of the local financial resource, to enlarge the local financial resource can not depend on dividing the tax income from central government simply. It should enlarge the local financial resource by developing local economy, improving economic construction, strengthening Local-tax management, quickening the reform of tax construction as well.