| 1. Initial Purposes and Significance of Research Since our country carried on the regionalistic reform, thecompetition between governments (including the competition betweencentral government and local government and the competition betweenlocal governments) has already become the irrefutable fact. Officialorders from the central authority have been released to prohibit localprotectionism and override control of tax deduction, but resulted in vain.Trace it to its cause, normalization of these behaviors themselves onlygives temporary relief but not gets a permanent cure. We need someresearch method which can get the relevant problems together into asystematic 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 transitioneconomy in one of his article Intergovernmental Competition: Analyticstyle of Institutional Transition in Big Country. And tax competition isundoubtedly a good breakthrough point into intergovernmentalcompetition research. Because tax is the basic financing channel of publicgood, and to obtain revenue as much as possible has always been thegovernment's primary goal. Meanwhile, the tax revenue is the economicguarantee that government's other goals can be realized too. In otherwords, the tax revenue can be a means as well as a purpose inintergovernmental competition. And what is more, under regionalizationterms, the competition around fiscal revenues will most likely become thefocus of intergovernmental competition, especially considering the weaklocal finance in our country. The author makes the nonstandard tax competition as thebreakthrough point to analyze the competition between local governments.Further, the author discusses the effect of the tax competition to China,and brings forward the standard advice. 2. Main Content and Viewpoints This essay is composed of four parts as follow: Part 1: The concept of tax competition and other relevantconcepts. Firstly, this part makes a general analysis of the concept of theintergovernmental tax Competition. The definition of the concept isserviced for the need of analysis. According to the definition of taxcompetition, the paper is not for the need of modality, but regulating therange of discussion in this thesis. So it should be the core question indefinition of tax competition that the thinking of the discuss range. Thepaper will divided tax competition into international tax competition anddomestic tax competition. Secondly, domestic tax competition is divided into three typesaccording to politics power in China as follow 1. The tax competition between central government and localgovernment. 2. The competition between local governments. 3. The competition between the inside of governments. Finally, analyze the performance of the nonstandard tax competitionbetween local governments in modern china. Part 2: The cause of the nonstandard tax competition betweenlocal governments in modern china. This part is most important in the thesis. Since our country carriedon the regionalistic reform, the competition between governments(including the competition between central government and localgovernment and the competition between local governments) has alreadybecome the irrefutable fact. We need some research method which can getthe relevant problems together into a systematic research, and can give usthe way to a permanent cure. According to the situation in modern China,the cause of the nonstandard tax competition between local governmentsis combined with several aspects as follow: 1. The reform of finance management system makes localgovernment not only holds the economics body which has self-profit, butalso has the more and more finance independence. 2. On the one hand, the policy of the tax which protect local industryis lasting, on another hand, it supports the local government protect thelocal economics. 3. Improper location between government and corporation 4. Irrational tax system in modern china. P... |
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