Study Of The Local Tax System

The reform of fiscal and tax system was underway in 1994, which mainly focused on the issue of separating fiscal revenue generated from all kinds of taxes from the perspectives of both central and local government. This new tax system emphasizes on the reform of income tax and flow tax, but it gives little attention to the reform of local taxes. Therefore, it leads to the underdevelopment of local tax system compared with the development pace of national economy. And for this reason, the author chooses "Reform and Optimization of Local Tax System" as his thesis title, and hope it can provide some help for the future reform.This thesis first gives a comprehensive account of the current fiscal and tax system based on separating fiscal taxes by central and local government. Then as far as the development of local tax system is concerned, a horizontal and vertical (i.e. both historical and international) comparison is conducted, and some lessons are drawn therein to put forward some valuable policy recommendations for China's local tax system.The basic structure of the thesis is as follows:Chapter 1 introduces the theoretical foundations for the current tax system, and some policy suggestions are given in consideration of the existing problems and drawbacks.Chapter 2 draws some lessons and insights for the development of local tax system based on the examination and comparison of foreign country's local tax systems.Chapter 3 points out some existing problems in the operation of local tax system from the viewpoint of its historical development process and existing operation mechanism.Last, this paper throws some light on practical measures and strategies to reform our local tax system given the current situation of local tax system in our country.This thesis is my graduation thesis for M.A. in Economics, which is completed thanks to the great help from my director Prof. Liu Zhicai. Along with many other professors and teachers, even my graduate classmates, my paper can't be finished without their help.Due to the author's limited knowledge in this research field, shortcomings and errors are possible. All comments and remarks are welcome.Linenhuan May,2000...