The Economic Development Of Northeast Old Industrial City Tax Policy

The Northeast old industrial cities, were the emphasis of industrialization strategy after the founding of New China, including resource exploiting cities (Daqing, Jixi in Heilongjiang Province; Liaoyuan, Fuyu in Jilin Province; Fuxin, Fushun, Benxi, Panjin in Liaoning Province) and equipment manufacturing cities (Harbin, Qiqihar in Heilongjiang Province; Changchun, Jilin in Jilin Province; Shenyang, Dalian in Liaoning Province). The Northeast old industrial cities used to be enormously devoted to the development of China's economy. They have been burned with higher planned share and heavier tax task. But in the market economy, the system conflict and construct contradiction appeared: the lost of traditional industrial domination, the shrink of production shares, the lag of technique and equipment, unemployment of people, the shortage of social security fund, the declined benefit of State-owned firms, the heaviness of debt. It is high time to find the new point of economic increase in the Northeast old industrial cities and overtake the Yangtze River Delta and the Pearl River Delta.The purpose of this thesis is to analyze the economic actuality and the urgent problem the old industrial cities have to face from the point of taxation view, discuss how to promote economic development of the old industrial cities by taxation policies. Surrounding this purpose, this thesis is divided into four parts:The first part analyzes the actuality of the old industrial cities: relative slowness of the economic growth, the deficiency of non-state-owned sectors, the low competitive ability of productions, the weakness of industrial competitive ability, the slowness of export increase, and points out the main problems the old industrial cities should solve: the historical burden of the stated-owned firms, strategic regulation of economic structure, employment and re-employment, the updating of the outdated equipment, continual development of resources-exploiting cities.The second part discusses the taxation factors that restrict the development of the old industrial cities. Firstly, it observes the burden of taxation in the oldindustrial cities. Secondly, it analyzes the disadvantageous factors in tax policy which hinder the boom of the old industrial cities, including the production-oriented VAT goes against updating of equipment and technical renovation, some policies of corporation income-tax go against enterprises' development, individual income-tax goes against individual investment and technical exploitation. Thirdly, it expatiates the tax reform in 2004, and points out the defects in this tax reform.The third part introduces international experience on booming the old industrial belt in other countries. Firstly, it introduces the successful cases of "LU-ER industrial zone" in Germany, "rustbelt" in the USA and Japan. Secondly, it draws a conclusion that policies should be taken to booming the Northeast old industrial cities, including financial and tax policies, the support of money and technique, legislation, and etc.The last part is the core of this thesis. It probes into tax policies selection in promoting the Northeast old industrial cities development. Firstly, it set forth further tax reform including exemption of historical tax overdue, practice of the consumption-oriented VAT, adjustment of corporation income-tax, improvement of individual income-tax. Secondly, the concerned matching measures are put forward, including transformation of government function; improvement of social security, implement of re-employment project, increasing financial transference of central government.