Intergovernmental Tax Jurisdiction

Tax Power is an important component of state power, which includes legislative power of tax, judiciary power of tax, executive power of tax and benefit power of tax. At present, the major problems in the fiscal area of our country are the financial difficulties of counties and townships, the enlargement of regional gap and the arduous task in equal ization of basic public services. Based on this background, the paper focus the reform of division of tax power on legislative power of tax, executive power of tax and benefit power of tax, which are the core factors in affecting the tax distribution relationships among our governments.Allocating the tax power among all levels of governments rationally, can optimize al location of kinds of resources, improve the efficiency of government administration, and have important significance both in theory and practice. The allocation of tax power is an important part of tax management system, and it is also the core of tax-sharing financial management system. At the present that socialist market economic system has taken shape, public finance theory has been firmly establ ished in our country, the reasonableness of the division of the tax power is becoming more and more important. It is not only conducive to deepening the tax-sharing financial management system, but also significant for the deepening of economic reform.The issue of the allocation of tax power among governments is a very rich subject. This paper begins with the definition of tax power. We make clear the conception of tax power, the content of tax power, and the allocation of tax power. Then, we demonstrates theoretical basis of the allocation of tax power from a theoretical point of view, obtains a salutary lesson and revelation for our country's reform of division of tax power through the perspective of international comparison. After that, this paper gives a review of the main contents of the reform of division of tax power in 1994. Through the use of large amounts of statistical data, we evaluate the performance of this reform objectively from the three aspects of legislative power of tax, executive power of tax and benefit power of tax respectively. We conclude that this reform has been a huge success. The distribution relationship between central and local governments has become rational, and the macro-control capacity of the central government is enhanced; legislative power of tax has been up to the higher government, and the opportunistic behavior of the local government has been reduced effect i ve l y; The tax revenue both i n the state adm i n i strat i on of taxat i on and the local taxation bureau has been grown rapidly, and the initiative of both central and local governments are inspired fully. However, with the economic and social development, the allocation of tax power faces new problems. Many problems, has hampered China's economic and social development, must be resolved. After the analysis of the favorable conditions in the reform of division of tax power, this paper presents specific reform proposals.