Tax Revenue Growth Rate Of Gdp Growth Correlation Analysis

The interrelation between tax and economic growth is an important issue in the economic study. Economic status decides taxation, at the same time taxation reacts to the economic status. On one hand, the scale, speed, quality and structure of the economic growth decide the total value, speed and structure of tax; On the other hand, as one of the important macro-control means, tax can affect economic growth on investment, consumption, distribution, structure and many other aspects with the policies of tax rate, tax burden, tax incentives and so on. The gradual development of marketing economy draws tax and economic growth increasingly close.Since the 1994 tax system reform, China's tax revenue has increased at a high speed.Compared to 1994, the tax revenue in 2004 has nearly fourfold. While providing solid financial security to the stable development of national economy, the sharp leap of tax growth has also attracted economist's attention that whether this high speed is coordinated with economic growth.Both the theory and experience studies indicate the cause and effect relationships between the income and the kinds of the revenue and investment export, employment productivity and innovation Compared with the higher revenue countries, the lower ones have higher GDP's real growth. Revenue policies effect the economy growth in two ways. First, the lower revenue brings the real benefits of savings, investment, labor and innovation on higher. Second, the encourage-measures adopted by lower revenue countries can transfer the resource from the departments and the industries with lower productivity to the higher ones, which improves the resources' total benefits, while the higher revenue countries conduct the other way round.In order to hold the situation and the change rule of the revenue in more sense,scientific evaluation of the correlation of the revenue incomes and the macro economies will benefit our country's macro decision-making and exert the revenue's function role to collocate the economy. That will facilitate the harmony between the revenue incomes and the economy's growth.This paper is divided into four parts: The first part briefly introduces the general theory of tax and GDP, including the conception and indicator system of tax accounting and GDP accounting and its docking ,and also introduced the factors which affect revenue and GDP growth; The second part is mainly analysing the relationship between tax revenue growth and GDP growth though using the tools of tax flexibility, macro tax burden and Laffer curve; the third part analyzes the phenomenon coming up recently in china that tax revenue incresed faster than GDP for several years and the reasons for the phenomenon. Part IV draws the conclusion and puts forward the corresponding policy recommendations.