Tax Policy To Promote The Development Of The Economic Cycle Research

Since adopting the reform and open policy twenty years ago, the market-oriented reform in economic system has brought dramatic change to Chinese society. The economy increases at a speed of 8 percent per year. This outstanding achievement has acknowledged all over the world. However, we have to admit the method our economy increases is extensive and the rapid growth we achieved is at a cost of over-consumption in resources and sever destruction in environment. We didn't take lessons from western industrial countries' model "pollutes first, governs then" in dealing with the relationship between environmental protection and economic development, unfortunately, we follow their wrong steps which deteriorate the natural resources that our per capita amount is at a low level."Decisions on Certain Major Issues of Constructing a Harmonious Socialist Society "passed in the sixth plenary session of the sixteenth conference of CCCP on October 11, 2006, issued again insisting scientific development, harmonizing development between human and nature, shifting economic increasing method, proving developmental quality, promoting development towards economical, clean and safe direction, and trying to realize a comprehensive, harmonious, sustainable development in economy. All of these were considered as the major content to construct a harmonious society. It indicates that scientific developmental view has set a new higher request for us to choose the way of circular economy. This requests us to realize shift of economic increasing method, and promote circular development so as to keep a sustainable, highly efficient, and well-worked development in economy. Circular economy is a systematical program which needs supports from every field. Promotion and encouragement from government is the important assurance to develop circular economy. As a major means in macroeconomic regulation and control, tax is admittedly the best option to drive the development of circular economy. So how to make well use of tax policy to achieve this is a question worthy of further study. The text altogether can be divided into three parts.The first part begins with the connotation and essentials of circular economy. It attempts to analyze the multiple crises under our traditional economic models from the strategic perspective of promoting circular economy and keeping sustainable increases in economy. It also indicates the necessity to promote circular development in economy, to the extent of scientific development viewThe second part firstly elaborates that it is necessary for government to interfere economy. Then, it conducts the research on the necessity of tax towards the development of circular economy. After summarizing the research and practice on the tax policies which in favor of development of circular economy in western countries, it demonstrates the drawbacks of our present tax policy system in the basis of assessment on the favorable policies.The third part is the key point of this article. In the view of our present economic situation, the article deepens its analysis towards the three R principles and proposes a general method on how to make use of tax policy to develop circulareconomy. Associated objectives of realizing the 3R principle--"reduce, reuse,recycle" with our concepts of current tax policy, it gradually researches how to choose the tax countermeasure to realize the 3R principles. It also gives some suggestions on reform of relevant tax policy in a new round of tax system reform.