Tax Policy Research On The Development Of China's Rural Cooperative Economic Organization

"Three Rural Issues" has increasingly become the key issue of our country's economic and social development. Rural economic cooperation organizations which conform to the practical needs play an important role to improve the peasant systematization, protect their interests and promote agricultural development. It has become an important power which can play as a whole of economic and social development in urban and rural areas, and establish a harmonious society.The sound development of rural economic cooperation organizations is supported by the institutional environment. The Government's economic policies related to rural economic cooperation organizations play a key role. Fiscal and taxation policy, as the tools of the government's macroeconomic regulation and control is important policy support. For the Rural Economic Cooperation Organization is mainly made of helpless peasants, the Government should offer financial, tax support and concessions, as it offer to the private enterprises. But in fact our government didn't do it well.Based on the framework of public economics, the author tries to make a comprehensive and systematic research of the fiscal and tax policy relevant to Rural Economic Cooperation Organization. Drawing on the experience of foreign countries the paper analyzed the problems of our country's fiscal and taxation policy, and proposed some recommendations.It is the author's opinion that Rural Economic Cooperation Organization belong to non-profit organizations which provide quasi-public products (Club Products) in rural areas. It is conductive to vulnerable industries and disadvantageous group. Under China's current national conditions, the Rural Economic Cooperation Organization needs the Government's special policy support, especially fiscal and tax policy support. Although the fiscal and tax policies relevant to Rural Economic Cooperation Organization are multi-faceted, the policies are too dispersed, incoherent and unsystematic to provide quantitative Institutionalized support. The tax policy is not well-directed and helpful. We should learn from the experience of other countries to make scientific definition of the corporate body of Rural Economic Cooperation Organization and insure their interests. The responsibility of all levels of government should be clear and the financial support should be increased. The financing channels of financial support for Rural Economic Cooperation Organization could be expanded. In order to build tax legal system which is fit for the development of Rural Economic Cooperation Organization, the tax policy for profit-making activity and non-profit activity of Rural Economic Cooperation Organization should be different.