Study On Tax Revenue Growth Exceeding GDP And Tax Cuts

China's tax revenue growth exceeds the GDP growth for 7 years in succession makes China's macro tax burden soars. The growth of China's tax revenue provides economic security to a new round of tax reform, and not to worry the impact of tax reform on tax revenues. In this new round of tax reform, doing researches on the adaptability of tax revenue and economic development, the reasonability of China's tax burden, and the necessity, feasibility, and the effect of tax cuts, will be of great significance to the choice of the tax cut policy. Based on these studies, we can provide detailed and creative suggestions on the reform of the tax system. The first three chapters analyzed the extraordinary growth of China's tax revenue which triggered the . policy of tax cuts; in the forth chapter, corresponding tax reform proposals are given based on the status quo of China's tax revenue and the tax theory.The first chapter analyzed the extraordinary revenue growth in the past few years in China, and concluded that if the Laffer curve does exist, there exists an optimal tax rate which can make the economy grows fastest. However, due to the existence of various factors, tax revenue extraordinarily grows year after year, makes the current tax rate goes further and further away from the optimum, which also have an adverse impact on economic growth.In the second chapter, an analysis of the necessity for China to adopt a moderate tax cut policy was performed. Based on the argument of China's current level of tax burden by different researchers, we reached a conclusion that the current tax burden is higher than the optimal tax rate. Western mainstream school has proposed the theory of tax cuts, and tax cuts currently are the international trend. Thus, we reached a conclusion: Currently, China should take appropriate tax policy, and core of the policy is "perfect the tax system, make appropriate tax cuts, and improve the investment and competitiveness of enterprises ". To improve the investment capacity and international competitiveness and promote faster economic development through the reform and prefect of the value-added tax and enterprise income tax reform and improvement.In the third chapter, an analysis of the feasibility of taking a moderate tax cut policy is performed. Analysis of the sub-types of value added tax and income tax rate shows the tax burden in China is relatively high. At present, revenue has increased and fiscal expenditure has a compression of space, the collecting standard is improving rapidly. These factors promise the implementation of the policy of tax cuts. And an analysis of the effects of tax cuts is also performed. Thus, the conclusion that the tax cut is to be effective is drawn.In chapter four, the implementation plan for the tax cut according to the status quo of China is given.Finally, based on the analysis and the theory of tax reform mentioned earlier, the conclusion is drawn that tax reform should rationally control the scale in China.