Correlation Analysis Between Tax Revenue Income And Economic Growth In Shandong Province

In general,it is theoretically believed economic growth determines tax revenue increase.Generally the tax revenue increase rate is not higher than the economic growth rate.Specifically the elasticity coefficient of tax revenue income to GDP should not be higher than 1.However,in recent years China's continuous ultra economic growth phenomenon has seen the tax revenue income stay at a high level. In 2001 the tax revenue elasticity coefficient was 2.7,in 2003 2.23,in 2006 2.05. How to know and evaluate the relationship between economic growth and tax revenue income increase becomes a controversial issue in the tax revenue theory field.After a thorough analysis of the existing literature the main factors affecting the tax revenue income increase can be summed up as economic growth,economic structure, economic efficiency,tax revenue collection,and empty increases.Through intensive investigation and study,based on comparison and analysis,the goal of this thesis is to summarize the main characteristics of the local tax income in Shandong Province,thoroughly show the inner link between the economic development and the local tax income,analyze and forecast the development tendency of the local tax income of Shandong Province,and propose countermeasures and suggestions to strengthen the Shandong Province tax source construction and enhance the local tax income in order to provide a valuable reference and basis for the decision-making.The outline of this study is as follows:Part one is the theoretical analysis of tax revenue and economy growth.It introduces the evaluation criteria of successful taxation system reform that promotes continuous economic growth as well as theneutral theory relating to economic growth.The second part mainly analyzes the correlation between economic growth and the tax revenue income in Shandong Province,which includes analyzing the factors that affect tax revenue income as a whole and conducting quantitative analysis on the degree of influence each factor has on the tax revenue income.The third part provides conclusions and policy suggestions.From the above analysis we draw the following main conclusions:1.The increase of Shandong Province tax revenue income is a result of the common function of economic output,economic structure,and reform of the taxation system.2.The main supporting center of the Shandong Province tax revenue income increase is secondary industry and the state economy,including the traditional underpinning industries as well as the emerging industries.3.The pattern of Shandong Province tax revenue income growth still belongs to one of traditional scale expansion;the function of its economic efficiency is not apparent. The underlying policy suggestions include taking the view of scientific development as a guideline,changing the idea of gathering wealth,maximising the leverage of tax revenue,cultivating positively the source of local tax;dealing well with the relations between the circulating tax and the income tax,giving proper attention to both efficiency and fairness,forecasting and making countermeasures scientifically, enhancing tax collection management,and further increasing the tax revenue income.