Research On The Tax Preference To The Influence Of Capital Flow In China

Capital is an important condition to a country's economic development, particularly to developing country such as China, the indraught of capital is very important. At present, intersectional flow of capital in China is very lopsided, over many years of innovation, the great mass of the funds are gathered to the east, a mass of capital transfuse to the east made tremendous contributions to the development of economy. At the same time, the economy's development of western region is very slow becase of the shortage of funds, and the gap between the east and the west is increasingly widening.the mass of capital flow into east, in addition to the unique geographical and human conditions of east, and also have the effort of favourable policy of government to the east.Tax preference's incline to east is the important reason that makes the lopsided flow of capital and enlarge the difference of region. For the moment, China has put forward the western development strategy and in the aspect of tax policy has been gradually achieve a balance, but for the condition that the west behind the eastern out and away, to attract funds and quicken development more need to macroscopical policy support, need further efforts of the tax preference.This article from the point of view of tax preference to analyse the revenue policy reasons of capital's unbalanced flow in the region, choose the Guangdong and Sichuan for the sample and carry through demonstration reaserach about the tax policy's influnce on capital flows, educe that the government should increase the effort of tax preference in west, and analysis since the western China development, the shorage of tax preference policy to promte economy's development of west.Against China's regional imbalance in development, especially in the condition that west is far behind of the eastern, the article finally put forward some countermeasure and suggestion about absorb capital of west, on the base of analyse the effect and problems of VAT (value-added tax) restructuring in the northeast, advise the west should implement full consumption value-added tax, from the angle of tax policy should increase the income tax's preference, improve the export tax rebate rates, then look forward to promote balanced flwo of capital in the regions and narrowing the gap of regions.