Study On Tax Policies For Promoting The Region Economy Coordinated Development

China is a country with a vast territory. However, the development between regions differs substantially. Since the Opening and Reform, there have been great achievements in the economic growth of the country, but the gap between regions continues to widen. To reverse this trend and promote a coordinated country-wide development is not only a vital economic issue, but a political one.The 5th Session of the 16th Plenary Conference of CPC explicitly established the coordinated development of the regional economy as one of the primary tasks for the 11th five-year plan. This strategy charts out the direction of the country's socialist economic construction for the next phase. It also symbolizes a complete reinvention of development mode from a partially efficiency-focused one to a more balanced one between efficiency and harmony.Economy is the foundation of tax, and tax in turn affects economy. The full implementation of coordinated development strategy of regional economies will definitely impose a far-reaching influence over the theory and practice of tax itself. During this process, tax shall also play its vital role as a key macroeconomic management tool. In this regard, it is necessary to conduct a comprehensive and objective analysis on the effects of current tax policies over the economic development. The existing problems and their causes in current tax policies shall be located from a perspective of correlation between tax policy and coordinated development of regional economies. Finally, it is of great practical significance to seek measures and methods to improve current tax policies to facilitate the harmonious development of regional economies.Under the guidance of scientific development philosophy, this thesis combines theoretical research with empirical tests, and employs methodologies of normative, historic and quantitative analysis. By learning from the theories and practices both domestically and abroad, the article finally proposes relevant tax policy recommendations to improve and promote harmonious development of regional economies, specifically aiming at the characteristics of the country, regional differences and current tax situation. The thesis falls into three main parts.The first section is the literature summary and explanation of the relationship between tax policy and harmonious development of regional economies. This part starts with the analysis of concept and categorization of tax policies, and then followed by essentials and characteristics of regional economic development. Its primary objective is to elucidate the theories of how tax policies stimulate regional economy. Tax policy is a broad concept with great extension. It is an integrated management and control system composed of tax policy objective, tools and impacts. To do a research on tax policy, we shall consider not only the institutional level, but the tools; not only the tax policy on macro level, but the micro level. For harmonious development of regional economies, the core is to develop, the key is coordination, the rule is dynamic evolvement, and harmony is the final objpctive. Thus, the establishment of tax policies shall meet the strategic requirements of the coordinated development of regional economies, and be abreast of its general characteristics. Tax policy could stimulate regional economy through factors such as capital injection, resources allocation, labor supply, and technology advances. Optimization of tax policies shall be directed to the economic development so as to fully release the positive effects of the policies.The second section is the contents and effects of tax policies to promote the regional economic developments. It first outlines tax policy contents and evaluates their policy effects, then come the problems and their causes. Following deficiencies are detected: Firstly, the steering role of preferential tax policies is not fully brought into play. They haven't improved regional economy as expected. Secondly, there are mismatches between the current structure of tax system and regional economic development. Thirdly, the gap between the rich and poor has been widened inherently due to the institutional defects of tax resources shift. Fourthly, current system of fiscal and tax allocation restricts the development process of regional economy. Fifthly, the excessive government intervention distorts the management effects of tax policies in regional economic development.The third section is the recommendations to optimize tax policies to further promote coordinated development of regional economy. Aiming at solving the problems and with the analysis of effects and powers of tax policy, this part provides a path towards optimization to improve the coordinated development of regional economies. Recommendations include: to further deepen the tax reform, improve the effect and power of preferential tax policies, streamline the fiscal and tax management institutions, strengthen the tax collection and management process to better serve the regional economic development. Furthermore, this section concludes with the proposals of Four Transformations of the policy-merit preference. They are: transformation of preferential tax policies from region-focused to industry-focused, transformation of policy objectives from encouraging individual regions outperform economically to promote common wealth, transformation of economic development pattern from partial volume growth to the development of recycling economy, transformation of regional economy from unequilibrium ladder development to a coordinated mode in and between regions.This thesis innovation mainly in three aspects: First, multi-angle multi-regional economic iace of China's current tax policies related to the development of a systematic assessment; The second is a creative way of coordinated regional economic development and characteristics of the essence conducted in-depth discussions; Third, in light of China's national conditions, tax conditions and the situation of China's domain regional economic development in the tax policy issues, contradictions, a analyze, and put forward the promotion of coordinated development of regional economies tax policy values and the path to further improve optimization.