The Reform Of Revenue Sharing On The Local Government Finance And The Policy Advices

China began to carry out the tax distribution system reform in 1994 in order to meet the economic system reform's need, established the transitional tax distribution system which kept up with the international conventions in some ways, built the Chinese regional tax institutional system., and has some active function in the ways of mobilizing the local government's enthusiasm of creating and managing finances and promoting economic development. But the tax distribution system reform's non-standard and imperfect has some disadvantage effects on the local government's finance system and especially the local government's finance income., the most basic question lies in that divides power causes the central government and the local governments had asymmetrical property rights and affairs, and the local governments'finance income can't satisfy its expenditure, and this leaded to the decrease of the local governments'position. If the local governments want to acquire out-budget income in some ways, the problems of area malignant tax revenue competition and insufficient public products supply will be brought out. Therefore, compared with the international succeed tax system reform model, Chinese tax system reform had many points non-standard and imperfect. After the tax reform in 1994,China also reformed some kind of important taxes, such as the income tax adjustment in 2002, exportation tax reimbursement taking on together in 2004 and the reducing and dismissing the agricultural tax, had some effects on the local governments'financial system, and led the local governments'financial income to be less and less. The unbalance between the local governments'income and its expenditure has hindered the local economic development seriously. The local finance system is one of the very important parts of the national finance system, if the tax distribution system reform wants to succeed in China, the local governments finance system's function can't be ignored. And if only mobilizing the local governments'enthusiasm, the whole finance system reform can be guaranteed to be succeeded. Therefore, researching the local finance income is very important for deepening and improving Chinese tax system reform.The paper wants to research the tax system reform's special effects on the local governments'finance from the perspective of studying the local governments'income, especially the Changsha City's financial income. This article mainly included the following contents: firstly, simply induced the process of tax system reform's evolution before 1994, including the tax system under the unified income and expenditure institutions from 1949 to 1978, the finance system of responsible for one's own finance, and analyzed these two tax system reforms'effect on the local government financial system. Secondly, researched how the main tax system reforms since 1994.affected the local governments'finance, and combined with the Changsha City's conditions of financial income and expenditure, analyzed the main kinds of taxes reform after 1994 and its effects on the Changsha City's financial system. Finally, the paper carried out some valuable and useful suggestions on how to improve and perfect the local government financial system. In a word, this dissertation discussed the tax system reform since 90s'main effects on the local governments'financial system beginning with the analyzing of the local governments'financial condition, at the aim of to provide some valuable and useful suggestions for improve and perfect the tax system reform by system theoretical demonstration and the concrete evidence analysis, and from the macroscopic perspective, carry out our further thinking for how to improve and perfect the institutions of adjusting the distributional relations between the central government and the local governments.