A Study On Tax Revenue Distribution Among Regions Of China

Reform of the tax system in 1994 improved the capacity of the central finance. However, financial difficulties associated with the grassroots and inter-regional issues such as the widening gap of the financial capability. The tax revenue statistics showed a widening gap of the tax revenue increase rate is greater than the speed of the widening gap of economic increase rate. The tax system and revenue distribution mechanism haven't been useful to adjust the tax revenue gap among regions, on the contrary, boosted the gap among regions widen. The rapid development of trans-regional business organization has led to the result that the developed regions become the tax sources plunder for the underdeveloped regions, and deviating from regional sources of tax and tax revenue are becoming more pronounced. So how to coordinate inter-regional conflicts on the distribution of tax revenue is particularly urgent. Because of this, this paper attempts to advance reform of the tax system in 1994—to study the issue of regional tax revenue distribution, with a view to provide some help to improve the tax revenue distribution among governments.ChapterⅠ, Introduction. This part will easily introduce the background of papers on the topics of study and define the scope of regional tax revenue distribution, including the study on the revenue distribution of tax revenue ownership right, tax collection jurisdiction and tax base ownership right among regions, review of domestic and foreign-related research results, the research methods and chapter structure, and the main innovation and default.ChapterⅡ, The problems and consequences that exist in inter-regional tax revenue distribution in China. This part firstly will analyze the three issues in the regional tax revenue distribution: inconsistency between source of tax revenue and the ownership of tax revenue, inconsistency between affordance of tax revenue and ownership of tax revenue, consistency between tax collection and the ownership of tax revenue, and then point out the three consequences from the unreasonable tax revenue distribution: exacerbated the tax revenue gap among regions, further expanded the scale of governmental irrational investment, caused a confused situation in the tax collection jurisdiction of local governments.ChapterⅢ, The factor analysis to regional tax revenue distribution in China. View from the ownership of tax revenue, tax collection jurisdictions and the ownership of tax base, the article abstractly obtains four major factors which intensively effected the regional tax revenue distribution in China: revenue-sharing mechanism , tax collection jurisdictions, the tax system and tax burden output.ChapterⅣ, Study of the main tax categories of tax revenue distribution among regions of China. This chapter will separately analyze the value added tax, sales tax and income tax which seem to have obvious contradiction among regional distribution of tax revenue .ChapterⅤ, International experience of tax revenue distribution among regions and China's comparative analysis. This chapter will give a comparative analysis on three aspects : the distribution of tax revenue, jurisdiction over tax collection and tax base in the regional distribution of ownership. And then learn from international experience of regional distribution of tax revenue, at the end of this chapter the author aims to draw a conclusion.ChapterⅥ, The countermeasure to solve the problem of revenue distribution among regions. In this chapter, the author have reached a conclusion, that is in the long run the government should promote the reform of the tax system, reconstruct the central and local tax system, setup an integrated distribution system, improve the fiscal transfer payment system and reform the current tax system; in the short-term the government should attach great importance on the innovation of the tax collection jurisdictions, build and improve tax distribution scheme among regions and tax return system. The purpose is to solve problem of tax revenue distribution among regions in China.The main innovation lies in these aspects as below:Firstly, this thesis uses Marxist method of resolving problem and sums up three chief problems existing in the tax revenue distribution among regions: the inconsistency between source of tax revenue and the ownership of tax revenue; the inconsistency between affordance of tax revenue and ownership of tax revenue; the consistency between tax collection and the ownership of tax revenue. And this thesis study the regional distribution of the tax from three areas: tax revenue ownership rights, tax collection jurisdictions and the tax base ownership rights. That is the difference between this thesis and other similar articles that engage in the case study.Secondly, this thesis presents some concepts formally which have been ignored and give a clear definition, such as tax revenue ownership right, tax collection jurisdiction and tax base ownership right, and the inconsistency between affordance of tax revenue and the ownership of tax revenue, the consistency between tax collection and the ownership of tax revenue.