Tax Expenditure As A Governmental Tool

Certain governance tools are indispensable for ideal governmental function to be turned into realistic. As one of governance tools, tax expenditure has been playing more and more important role in economic activity. How to utilize tax expenditure as a governance tool, therefore, has become a problem to be solved urgently at present. From both theoretical and practical perspectives, the thesis explored tax expenditure tool and its functions of macroeconomic regulation and control as a special economical adjustment method. The full text is divided into four parts:In part one I defined the concept of tax expenditure as one kind of governance tool, together with its classification and main forms, and elaborated the evolution of tax expenditure theory and practice.Part two was devoted to an analysis of the characteristic, scope, mechanism and function of tax expenditure in its application as a governance tool.Part three was an evaluation of the domestic and foreign practice of tax expenditure. Based on the analysis of its domestic and foreign applications, I pointed out the possible problems in applying tax expenditure as a governance tool in China and summarized the experiences and lessons of tax expenditure application as a tool in foreign countries which might be taken as a reference for China.Part four was a discussion of the ways of utilizing tax expenditure as policy tool in China. Tax revenue law environment is also not extremely perfect in our country at present stage, the tax system structure is quite different from the western developed countries, the related statistical analysis tool development still was at the start stage, all of which should be taken into account during our introduction and implement of tax expenditure as government tool.The thesis took the perspective of governance tool as the cutting point of discussing tax expenditure. With the combination of theoretical and practical analysis, I tried to establish a new pattern of government management by virtue of a throughout discussion of tax expenditure tool in order to effectively regulate its application in China.