Research On The Taxation Reform Under The Public Finance Framework

The third Plenum of the 16th conference mentioned the transition to public finance, now the framework has been basically established. Fundamentally speaking, it is actually a transition of our government from economic development-oriented to public service-oriented which changing the government's conduct and systems. Finance is the government's financial management activities. Under the market economy, public finance not only has to correct market failures in order to improve the market system but also has to manage income distribution through the appropriate economic and legal means in order to resolve the unfair distribution of social problems, in the meantime it has to increase infrastructure investment in public facilities and use fiscal policy and other measures to maintain economic development in stability and health.At present, there is data which shows that the existing tax system does not meet the requirements of public finance functions: the government in national income distribution is high, income gap is widening, the macro-tax burden is high. Therefore, we must deepen the reform of the tax system in order to speed up the transformation of government functions and to speed up the public finance system.Based on the above understanding, this thesis determines the basic requirements of the public finance system to the tax system through analyzing the characteristics of the market economy in China and the change of government functions. According to this basic requirement that the tax system and public finance functions must be consistent with each other, this thesis comes up with the problems and reasons of China's current taxation system by using some chart data and dynamic comparative. Against these problems, according to China's actual and specific national conditions and to learn from other market economy countries'successful experience, we think that China should reform the current tax system to meet the requirements of the functions of public finance to raise money, macro-control, tax regulation, regulation of unfair distribution of national income, to reduce overall tax burden, optimizing the structure of the tax system.