The Economic Adjustment Function Of Consumption Tax

Law's function is the ability of making an achievement, it means the society effect of the law according to its inside structure of the law. The society function of the tax law is decided by the economic characteristic of tax law, which mainly presents as the guarantee for revenue from tax and economy .regulate. Though the economy-regulating function is affected by the development of market economy, the tax law still regards revenue from tax guarantee as its principle function. Unlike other tax laws, the economy-regulating is the most important thing of the consumption tax law. It is not only the requirement of the macro view adjusting to controlling economy, but also decided by the economy regulates function of the consumption tax law. There are three direct aspects of the economy-regulating function of the consumption tax law: the first is correcting bad consumption behavior; the second is protecting environment and resources; the third is equilibrium income allotment. And there are two indirect aspects: controlling social gross earnings and guiding society production.The consumption tax system firstly carried out in 1994, but the results of regulating the society economy is not obvious. The adjusting of tax law in the beginning of this year did not solve problems basically. There are many problems in regulating scope, regulating strength and regulating means. The direct causes are the unperfected of lawmaking, and un-value the regulating function of tax law.If we want to excellent make the economy-regulating function of the consumption tax law, we should make the consumption tax system excellent. Firstly, we should establish reasonable consumption tax law system. The national lawmaking organization should draw up to consumption tax law, which is a fundamental law of the consumption tax .The lawmaking organization of State Department, province class or bigger city can be authorized by the national lawmaking organization to establish implemental laws. Secondly, we should make the lawmaking principle of the consumption tax law more excellent. The most basic thing is insisting a macro adjust to control for the lord, and then increasing public finance income for assist. Thirdly, expands the target of economy-regulating of consumption tax law adequacy, opening consumption tax of advertising for particular tax and usage fee property of the consumption behavior in good time; Fourthly, according to the demand of economy-regulating, decide and adjust tax types and tax rate, and to strengthen the interaction of price tax. Fifthly, make the means of taxing and regulating more excellent.