All Levels Of Government Tax Competition Problem

1.Initial Purposes and Significance of ResearchSince our country carried on the regionalistic reform, the competition between governments (including the competition between central government and local government and the competition between local governments ) has already become the irrefutable fact. Official orders from the central authority have been released to prohibit local protectionism and override control of tax deduction, but resulted in vain. Trace it to its cause , normalization of these behavior themselves only gives temporary relief but not gets a permanent cure. We need some research method which can get the relevant problems together into a systematic research, and can give us the way to a permanent cure.Germany Professors Carsten Herrmam-pillath put forward "intergovernmental competition" as the research method of transition economy in one of his article Intergovernmental Competition: Analytic style of Institutional Transition in Big Country . And tax competition is undoubtedly a good breakthrough point into intergovernmental competition research. Because tax is the basic financing channel of public good, and to obtain revenue as much as possible has always been the government's primary goal. Meanwhile, the tax revenue is the economic guarantee that government's other goals can be realized too. In other words, the tax revenue can be a means as well as a purpose in intergovernmental competition. And what is more, under regionalization terms ,the competition around fiscal revenues will most likely become the focus of intergovernmental competition, especially considering the weak local finance in our country. 2.Basic Train of Thought There are two different trains of thought to intergovernmental competition. The first comes from new classical economics, and the second, evolutionary economics. This essay adopts the latter. Evolutionary economics regard competition as the screening mechanism which can recognize the low cost institution. This essay inclines to adopt the train of thought from evolutionary economics, and regards the tax competition as the screening mechanism of the tax system and other relevant systems. This has determined that the basic view of this essay is to support the rational and normal tax competition, but not forbid the competition.In addition, There are still two different trains of thought on how to standardize tax competition: First, normal and concrete competition behavior itself, this is similar to OECD's regulation of competitive methods in international tax competition; Second, achieve the goal of standardizing competition behavior through standardizing the competition order, and this is what Professor Casten Herrmann-Pollath called "order policy ". In the thesis, the author has adopted the latter , namely the one that standardize the tax competition by standardize competition environment, including the nomoctacy environment, financial institutional environment,etc.3.Main Content and ViewpointsThis essay is composed of two parts. The first part makes a general analysis of intergovernmental tax competition in three chapters.1) The concept of tax competition and other relevant concepts.2) This chapter briefs the research achievements and the significance of tax competition theory.3) This chapter summarizes the environment of tax competition on the basis of the the above analysis. It includes one country's economic system and structure, political system, political culture, the financial system, foreign economic relation, etc.The second part looks into the typical intergovernmental tax competition in China. It is the most important part of this essay. 1) This chapter put forward the institutional environments of intergovernmental tax competition in China. The analysis of these environments are based on the first part, combining the actual conditions of political and economic transition being carried on in our country. It is the peculiar environment of China's intergovernmental tax competition, that determines the chara...