Vertical Management System, Tax Authorities And Local Government Relations

Tax authorities,as a national administrative law enforcement department, play an important role in organizing income and regulating the economy. As the socialist market economic system is gradually establishing, the restrictions of the old "two leaders" management system to functions of the tax authorities is more and more evident. The objective of the vertical management of the tax authorities is to help the tax authorities out of the shackles of local governments, enhances the independence of law enforcement, and improves the quality of the administrative efficiency. This system plays an active role in improving the relationship between tax authorities and local governments. However, the disharmony is inevitably existed between them under the new system.For example, the local government weakens the support to the tax authorities, restricts the administration of the tax authorities, leads the supervisory failures, and is not conducive to regulate local government to obtain income. All these problems, to some extent, interfere the correct management of the tax authorities.The reasons for the above problems come from multiple perspectives.From the current government management perspective, the reasons can be summarized as follows: the obscurity of the duty separation, the own shortcomings of the vertical management organization design, the lack of balanced allocation mechanism, and the lack of the rule of law Authority, etc.From the local government perspective, the reason is because of the ignorance of the administrative law enforcement and even the intervention strategies.From the tax authorities'own perspective, the problems are the defects of the law enforcement supervision mechanism and the weak and insufficient effectiveness of the law enforcement authority. To improve the relationship between local government and the tax authorities, and to effectively reinforce the vertical management system, we should change government functions, create regulatory enforcement mechanisms, and establish the coordinated between the two.We should also exchange cadres, provide interactive communication and strengthen the management and supervision of the tax authorities.In this paper, the theories of the public administration, political science, the government management system and other related theories are used;literature research, comparative studies, data analysis, empirical research are performed.Using the tax authorities as an example, the functions of the vertical management system of departments and the relationships between the local governments are analyzed.Referring the practices and experiences from the foreign governments vertical management, suggestion of how to build a vertical management relations and positive interaction between local governments are provided to avoid weaknesses and to further improve the "compartmentalization" relationship, paving the way to better promote the economic and social development and to build service government basis.