Taxes And Social Governance: Theory And Practice

Taxation is an act of government that imposes on individual. Social governance is beyond the act of government. Taxation actively and strongly involves social governance through income, adjust, and control to make leverage effect of taxation policy. On the other hand, taxation is beyond the traditional government perspective and has indirect promotion on non-government governance such as market governance subjects—enterprises and social governance subjects—social organizations and non-profit organizations.This paper analyzes and discusses taxation functions in government governance and non-government governance based on correlation, theory, and concepts of taxation and social governance. It also compares China taxation governance with foreign taxation governance and uses subjects and experiences for references. Two approaches—government approach and non-government approach—are proposed for taxation involvement in social governance. By government approach, taxation right configuration, items of taxation, and taxation law enforcement must reflect government responsibilities in taxation. On the other hand, by non-government approach, taxation should strengthen incubation and promotion among non-profit organizations and profit enterprises. At the end, this paper proposes the direction of good governance of taxation. Namely, government should realize the optimal governance effect of tax based on social development and people satisfaction. On the one side, government should use green taxation to make sustain governance. On the flip side, taxation should propose structural tax abatement based on cost-benefit analysis, international tax abatement, and China taxation reality to satisfy people.