Research On The Local Tax System Under Public Finance System

Our country implemented the tax-sharing fiscal system reform in 1994, which separating the fiscal revenues between the central and local governments in form of dividing the taxes, thus the local tax system has been set up tentatively. Ten years passed and the local tax system has been running smoothly, it has played a positive role in the steady development of local economy. But because the reform of fiscal and taxation system in 1994 emphasized on how to solve the problems of low percentage of central fiscal revenue and also for the difficulties lying in state finance revenue and expenditure, so it attached little importance to the construction of the local tax system. Our present local tax system is nonstandard and unscientific and has fallen far behind the development of economy dramatically, which has influenced the function of tax to give full play and the effective operation of local economy. And in view of the above reasons, the author chooses"Research on the local tax system under public financial system"as the title of this dissertation.This thesis uses the fundamental research method, the empirical study method, the canonical parse method, the contrastive analysis method.Writing in the papers a lot of access to books and articles, through theoretical analysis of public finances, tax system that places a theoretical basis for modern financial and developed a comparative study of local taxes, on its lessons; cited large amounts of data , the fact of China's local tax system and the reasons for the problems.This article thought: China's current reform of the local tax system should be improved in accordance with the requirements of the socialist market economy, learn from foreign experience in the construction of a system of local taxes, according to the needs of the situation of economic reforms, taking full account of the various regional economic development imbalances, the actual income levels varied circumstances on the basis of established with the local economic development and social stability of the local tax system needs. During this process because of the conditions of our country followed the principle of the right to tax, and financial authority and the principle of unity of the basic power, efficiency take into account the principle of fairness, the statutory principle, established in the local government tax revenue in the dominant position.Appropriate division of powers, the tax will be necessary to empower local, and the adoption of tax revenue to the legal system of norms, establishing the appropriate concentration of the central and local management at different levels of combining model.At present local taxes should be subject to sales tax for taxes, supplemented by urban construction tax, real estate tax, urban land-use tax, the use tax, such as travel. Urban maintenance and construction taxes, property taxes and other taxes according to the nature and functions of the government and the relationship between urban development and will be closely related to tax under the jurisdiction of municipal finance; arable land tax, land use tax, and other cities and towns with the county's economic development is closely related to tax under the jurisdiction of to the county treasury. With the level of China's economic development and further improve, the tax system, taxes and further improved and sales tax to replace property taxes, the main tax status. Local governments at all levels should be between the tax division of powers with the local governments to gradually reduce the share of taxes norms, below the provincial governments at all levels are associated with the strong economic growth and the income elasticity with strong growth potential and will certainly tax as its main taxes, a good local tax system.Therefore China's local tax system should be clear in the relative independence of local governments have the right to tax (some legislative powers, items, the tax rate adjustment to the right to stop collecting the levy) on the basis of the sales tax as the main tax supplemented by urban construction tax, real estate tax, urban land-use tax, travel tax and other taxes, possesses a reasonable size and income tax structure, such as mutual contact each other by restricting the formation of organic entity.Along with the national big system reform's start, the country land tax merge is imperative, this exercises the relatively independent tax power for the Local authority to provide the convenience. Under the identical tax affairs department's management, the central committee and the place categories of taxes' reflection is more real, the easy Local authority correct to exercise the tax power reasonably, strengthens the place financial resource, causes it to match with the governance. Enables the Local authority to be possible to utilize the tax policy adjustment local social economy as circumstances permit, disposes the local resources reasonably, provides conforms to the public product which the local resident needs.