Research On Taxation Policy's Role In Economic Growth

At present, China's economy has already entered an important period with a strategic opportunity, and the situation is good in general. However, in this period China is facing various economic and social contradictions. The regional economy development is unbalanced and the industrial structure is expecting to be adjusted, restricting the economy to develop in sustainable manner.Seeing from the international environment, with the continuous creation of science and technology, with the economic globalization and the trade liberalization, the problems of resources, market, technology and competition among talent people mingle with each other, making the world economic environment more complex and proposing new challenges to the development of our country'economy and society.Looking from the domestic environment, in the middle stage of industrialization, market mechanism gradually plays its leading role and the situation of economic growth had greatly changed. The main contradictions of economic growth are showing deep structural ones, such as the remarkable regional disparity, the coexistence of"high economic growth"and"high cost", the increasing pressure of environment and resources and the shortage of self-driving power on economic growth. All of these restrict the sustainable development of the economy. China is still on the way to change from planned economy to market economy. The solutions of problems on economic movement depend on not only market but also the government adjustment. Taxation policy is a workable method for the government adjustment. Therefore, under such a new environment, the research on taxation policy of promoting economic growth still has its important meaning and practical value.First, the paper, using normal analysis method, elaborates the government adjustment, the relations and models between taxation policy and economic growth. It also explains the reason, necessity and feasibility of the government interference on economic growth by applying taxation policy.Secondly, the paper does an instance research on the taxation policy and economic growth from the following three aspects: the total amount of economy, regional economy and industrial structure.On the aspect of economic total amount, this thesis, by measurement analysis, shows that a close relevance doesn't exist between tax growth and economic growth. Using factor analysis method, it concludes that macroscopic tax has a certain influence on amount of the tax growth, while the economic growth has a decreasing impact. Based on the analysis of micro-economy main body's behaviors, investment rate and tax growth are showing opposite changes, and the influence of tax on enterprise investment and self-innovation is not remarkable. On the aspect of regional economy, after analyzing the undulation of regional economy and tax, the thesis shows that the economy and tax in eastern areas are more stable than those in western areas. Furthermore, the tax amount in eastern and western areas is higher than that in central areas, while the eastern areas have a bigger GDP (including tax) than central and western areas.On the aspect of industrial structure, the primary industry of our country still undertakes a certain tax burden and the tax burden of the second industry is moderate, which shows a stable relationship between taxation policy and economy growth. The third industry bears a heavier tax burden and has a greater undulation. In a word, the industrial structure in eastern areas is superior to that in central and western areas.Finally, concerning the problems appearing in economic increase, the paper puts forward taxation policies which could make the economy have a continuous and stable development.In order to keep a continuous increase on the economic total amount, it is necessary to determine a reasonable macroscopic tax burden (about 20%), improve self-innovating ability of enterprises and regulate the personal income further.In order to promote a harmonious development in regional economy, a fair tax environment is expecting to be created and the assimilation problem on regional industrial structures is expecting to be solved. The taxation policy should be inclined to the central and western areas.In order to upgrade the industrial structure, taxation policies, to promote international trade and to keep a sustainable development are in great need.