Optimal Tax Model And Analysis On The Thinking Of China's Tax Reform Revelation

In the 1980s and the 1990s, the western countries had made two reforms in taxation system in a large scale which greatly attracted people's attention. Based on the taxation theories of the supply school, the reforms in 1980s emphasized on decreasing the excessive burdens in taxation and realizing the goal of efficiency. However, the excessive reduction of taxation resulted in the decrease in the revenues of the government and there were more conflicts in social reallocation because of ignoring the equity principle. Having further studied the supply school's theories, the western taxation theorists made the new theory of optimal taxation system which became the basis of the new reforms in the 1990s. In this article, the contents of optimal taxation are summarized and the two main parts of western optimal taxation system theories are included, which are the development of theories and the definition of the policies in optimal commodity taxation and optimal income taxation, and the discussion on the basic mathematical and economic studying method. According to the fundamental principle (equity and efficiency principle) of taxation system design and the present situation of our country, correlative policies and advices on taxation system reforms, including structures of the taxation system and designs of the taxation category, are brought forward. However, there are many restricted factors in taxation system reforms. And the effect of the optimal taxation theory is also limited because of the unrealized supposition. So in the course of comprehensive study, we must pay attention to and overcome the restricted factors in order to realize the goal of the optimal taxation.