Build And Perfect Local Tax System Construction In The Framework Of Public Financial System

Local tax allocation is an important part of local regime construction. Building of a perfect and relatively independent local tax system with intact structure, consummate system and standardized operation is an objective requirement which will protect the normal function of government and the effective supply of local public commodity, maintain local government construction as well. Though there still remain severe stagnation in local tax system reform and its unreasonable structure, which can not adapt to the requirements of market economic development. The impetus of its theory study from system stratification plane which will deepen and perfect the local tax system reform is meaningful to the construction of socialist public financial system. In this article institutional economics is set as the theory framework of our research on local tax reform. It carries on theory and demonstration study on the status, problems, corresponding reasons and consequences to find out a system innovation in local tax system. Some basic assumption is also put forward to build and perfect local tax system construction in the framework of public financial system. The article is composed of three part:The first section looks back on the changes of our local tax reform and makes basic comments on the local tax reform from the 1994.The second section points out the main problems in our functioning local tax system---path dependence in the local tax changes which causes relatively serious imbalanced system.The third part explains the theory gist of local tax system in the framework of public finance and brings forward basic assumptions of its system innovations --- reasonable and scientific division of tax allocation and category, optimizing functioning tax system, standardization tax preference, advancing relative sets of reform.