A Study Of Property Tax As The Main Type Of County Government Tax Revenue

As Chinese basic government, county governments directly reflect the wishes of most people, and play an important role in all fields of society. However, county governments bear the weakly financial functions in the current five-governmental structures. Moreover, their expenditure and income are inconsistent in long time. With the reform of tax distribution system deeply, and with the promotion of comprehensive education, the contradiction becomes increasingly acute, and must be resolved. In order to strengthen county government functions and increase their investment in infrastructure, we have to divide tax power correctly. To date It is most important to establish the main type of county government tax revenue. Under this background, it is great meaningful to do research on property tax as the main type of county government tax revenue.This paper is divided into four parts, analyze and prove that property tax is suitable to be the main tax of county government, and test it in practice.The first part includes Introduction and Chapter 1. Introduction presents the social background of county government. Chapter 1 reviews some significant literature about this topic at home and aboard, and summarizes the basic ideas and the direction of property tax.The second part includes Chapter 2. Compare the quality of property tax, business tax and income tax, as well as demonstrate the growth and stability in property tax by theoretical and empirical analysis methods. Furthermore, the efficient provision of local public goods theory presents that county government must offord local public goods, in order to meet the needs of local residents. Because property tax is benefited, stability and growth, so it can ensure to provide local public goods effectively.The third part includes Chapter 3 and Chapter 4. They present domestic practice and foreign experiences as well as the status quo in our property tax system. The analysis suggests that property tax can not be the main type of county government tax revenue at present.The fourth part includes Chapter 5. In order to construct property tax as the main tax of county government, the anlysis suggests the reform framework of property tax. Furthermore, we estimate property tax revenue after reform, using the data of Siming District in Xiamen City, and show that reformed property tax can become a county government tax as the main type.