A Research About Macro-Tax Burden And Economic Growth In The Chinese Transition Period

Revenue roots in economy and also counteracts economy. The proportion that takes GDP normally with the income of tax revenue reflects macroscopic tax burden, it has shown a certain period the concentration level of government financial resources, it is important for a country economy to accurately limit certain period tax burden development and make it maintain a reasonable level.The phenomenon that the growth of tax revenue is higher than the economic growth after the reform of tax-sharing system set people thinking about if the macro-tax burden is too heavy, especially when we face many economic difficulties in 2008. The consumer demand, the investment demand and the demand for foreign trade net export is the Troika of driving economic growth, but all of them fall into morass now. The slack of domestic demand is chronic malady, investment falls because of macro control, export increases slowly. All of projects have put tax reduction in a more prominent position in economical encouragement. Whether it is feasible to reduce tax burden has been the focus of the society.The paper was divided into seven parts: the part of the introduction include the researchbackground,reviewandcomments on foreign and domestic literatures, content and hypothesis; The second chapter of this paper introduces the theory of the tax burden and the economic growth, introduces the relationship between macro tax burden and economic growth from the concepts and theories of them. The third chapter has an analysis about the relationship between macro-tax burden and economic growth to provide basis for further study. Chapter four has a statistical analysis on national and local tax burden on in size and changing trend, also revels the special phenomenon that nominal macro-tax burden differs significantly from its actual macro tax burden. Chapter five and six, according to the indexes, theory and model, chose date from 1985-2007, estimate optimal macro-tax burden. The result showed that, Chinese macro-tax burden in a narrow sense is near or at an optimal level and upward, while the macro-tax burden is high without fail. And that comes directly from the nonstandard structure of government income and the local government unreasonable charging. Then quantitate local government behavior, choose date from 1995-2007, use the Panel Data analysis method to discuss the factors that affect local government behavior. Chapter seven pointed out the relevant policies and proposals. The innovation of this paper consists in following aspects. Reveal Chinese special phenomenon that nominal macro-tax burden differs significantly from its actual macro tax burden, and also point out that the basic reason is local government grab behavior. Further more, quantitate local government behavior, discuss further the factors that affect local government behavior.