Analysis On The Costs And Efficiency Of Local Taxes System In Hunan Province

After established a financial management system of tax distribution in 1994, China also established a relatively perfect central tax system, at the same time fixed between the central and local financial allocation relatively in the system. This signifies that China's local tax system has been initially established. More than ten years after the reform of the tax system, the building of the local taxes has been made great progress, the total local tax revenue growing .The local taxes is not only the main source of income for local finance, but also places an important role in infrastructure, As its very closely with the local economic development and the grass-roots taxpayers, the local tax system plays a decisive role on the national economy.Although great achievements have been made after the establishment of local tax system in China, there are still some problems. Based on the summed up of studies by the dynamic at home and abroad, this paper introduced the tax cost, tax efficiency and the relationship between them. An analysis on the characteristics and its need to exist of the local tax system was done at first. Then established an index system to evaluation local tax cost and efficiency, and use the data of Hunan province to analyze the cost and efficiency of local taxes quo station, identified the factors which impacted the local taxes cost and efficiency of Hunan province, Finally, in view of the problems identified above, we give some policy proposals on how to reducing costs and improve the efficiency of Hunan local taxes...