The Study Of China's Macro Level Of Tax Burden And The Optimum Measures

As a core issue of tax policies,tax burden has been the focus of people's attention. It is through the different tax burden on different economic business to get its impact on economy. The tax burden policy is the key factor to effect the national economy .Whether it is rational or not has important influence on economic life. Firstly, through analyzing the various factors affecting the tax burden and explaining the principles which reasonable tax burden should abide by based on the basic concepts and theories, this paper pointed out unreasonable reality of China's tax burden and its adverse effects on the economy and social life. Secondly, by introducing the theory of reasonable level tax burden.This paper verified that finding a balance between national output and tax revenue for the optimal level of tax burden is feasible. Then, the paper analyzed the macro tax burden and the general relationship between economic growth and the tax burden. By constructing a concave function, analyzed the rate from 1985 to 2004 of China's total investment and the private investment to estimate a reasonable level of macro tax burden. Finally, given the reality of China's current level of tax burden, the paper suggested the ways to optimize our tax burden in order to provide a theoretical and political basis for China's tax reform.