Tax System Arrangements On The Stock Market Efficiency

It is self-confident that the status of the stock market has become increasingly prominent in China's current economic operation. The stock market has made an important role in China's economic development, the efficiency of which has become an important contractive factor in the entire economic development. There are many policy factors that affect the development of a country's stock market, in which the tax system is one of the most important. While the arrangement of the tax system for the stock market affects the market efficiency from many different angles. The changes of the tax system arrangement in our stock market, especially the adjustments of the stock transaction stamp tax rate have made an important influence to China's stock market efficiency. But the previous research results mostly analyze and measure the efficiency from the transaction angle, the stock market turnover, the stock value fluctuations, and so on. However, the analysis of the influence in the information efficiency is still at an early stage, which is in the lack of evidences to support the theory, so its policy recommendations are lack of theory basis in the empirical study.This paper studies the tax system in the stock market at home and abroad from different perspectives of the efficiency, and discusses how the stock market impacts the tax system for the trading efficiency and information efficiency. Combined with the reality of our country, it expounds the impact of the tax system for the stock market efficiency in China. This paper uses Empirical Analysis method to analyze the most recent adjustment of the stamp tax on May 30, 2007 as an example, which is the first time in china to analyze the last adjustment in China's tax system. It analyzes the arrangements for the information efficiency of the stock market, creatively putting forward that in china's current economic environment with laws and regulations established under the circumstances, how to reform China's stock transaction stamp tax system, and China's recent and long-term objectives of the reform in the tax system and policy recommendations.The specific policy proposals are as follows: First, the short-term goal is to levy stamp tax unilaterally on stock transactions; to expand the scope of stamp tax revenue; to increase the stamp tax rate. Second, China's long-term goal is to establish an integrated tax system, and to establish a tax system, which views the securities transaction tax as the main tax, supplemented with the stock stamp tax, the stock transaction income tax, the stock investing gains tax and inheritance tax.