Cancel Agricultural Tax The Context Of County And Township Fiscal Reform

Agricultural tax policy of our country has experienced many ancient system reforms and many modern policy adjustments. ((The PRC agricultural tax regulation)) promulgated in 1958 indicates fundamental building-up of new Chinese agriculture tax system. The regulation has been put into effect until Jan. 1 st 2006. The agricultural tax plays an important role in many aspects, such as running our country regime, ensuring that the country keeps the necessary grain source, developing agricultural production, carrying out the rural policy and dealing with the relationship of revenue distribution between the country and peasants. However, tax increases the farmers' burden, which makes their income increase slowly. If the impartial problem produced by city and countryside bilateral tax system cannot be solved in time, it must be harmful to construct the harmonious society of socialism. So, canceling agricultural tax becomes the necessity from some degree.After rescinding of agricultural tax, the local government almost lost the ability of gaining revenue. The disbursement continues to increase, the gap between revenue and expenditure grows larger. " Payroll finance " is limited, so it is difficult to realize the political power of local government and the ability of providing the public goods comes down. Face to these new problems and contradictions, how to reform local finance actively and bring out feasible solutions become the task that many experts and governments of all levels concentrate on. Just as what Premier Wen Jiabao pointed out: " Canceling agricultural tax is just the first step of reforming, we still have a long way to go and have to make more effort to consolidate the fruit of reform. "This article takes how to reform the local finance as the starting point and the foothold and takes the effect produced by canceling agricultural tax as the studying background. The article uses the methods of elaborating theory and analyzing present conditions to discuss the reform measures. There are four parts in the article:The first part delineates the agricultural tax evolution and the significance of rescinding. First, the change and development of agricultural tax from BC594 to Jan. 1st 2006 are introduced. Then, the part analyzes that after canceling agricultural tax how the economics and society of China are affected positively.The second part discusses the system of local finance and the situation of revenue and expenditure. This part, first, introduces the main changes of the local finance before and after 1949.Then, discusses the situation of the local finance from two aspects which are the revenue and expenditure of the countryside finance and the relationship between the countryside and town finance.The third part analyzes how canceling agricultural tax affects the local finance negatively. For example, the gap between revenue and expenditure grows larger, it is more difficult to realize the political power of local government and the ability of providing the public goods comes down.The last part is based on the third part and brings forward six measures to alleviate the difficulty of the local finance.