The Optimization Analysis Of Tax System Between Central And Local Government Based On Government Finance Function

All the while, there are two questions which need us to settle, one is how to know the degree of the fiscal decentralization and the other is how to make the finance system standard. The thesis discusses the two questions above primarily combining the reform of the divided tax system. The thesis figures out that the theory elements for the existent of the divided tax system are the fiscal decentralization theory and the finance unionism. It is reasonable for the existent of the divided tax system. The article evaluates the divided tax system by the Sandford standards from three aspects. One is how degree the innovator realized the goal, the second is how about the durative of the tax reform and the third is how many byproduct the tax reform bring out. The results indicate that we should probe into more about the questions of the degree of fiscal decentralization and the standardization and the institutional of the divided tax system. The three functions brought forward by Musgrave became the basic principle of compartmentalizing the affair power and the finance power. The article defines the affair power and the finance power based on the peer to peer principle and educes the theoretic definitions, then the article indicates the shortage in practice and put forward some advices: We should persist in the principle of market preference in compartmentalizing the affair power and measure the market function and the government function reasonable. We should persist in the principle of local government preference and compartmentalize the function between the center and the local scientific and make it been a legal system; We should persist in the principle of symmetrical affair power and finance power. First, we need abundance tax for compartmentalizing the finance power. We should regulate tax category and bring the out-budget capital into the budget system; we should innovate the tax category in existence and establish the local principal taxation. Then we should compartmentalize the taxation between the centre and the local based on the principle of symmetrical affair power and finance power and intercalate the share taxation reasonable. At last, we establish the reasonable transfer payment system and make it been a legal system. With the definition of the affair power and the financial power the reasonable tax system between local government and center government has talent showing itself.