Study Of China's Tax Burden Differences

According to the Principle of combining the economic development and geo- relation, 31 provincial administrative areas in China' s Mainland can be divided into four economic areas that are the eastern municipality directly under the Central Government, coastal province of east, middle and the west. Under the common influence of many kinds of factors, there are relatively obvious disparities in the economical development among all kinds of areas of our country; the enormous difference exists too in tax burden of various regions. The level of real burden of taxation of every area is successively the eastern municipality directly under the Central Government, coastal province of east, . the western region and middle part from high to low at present. With the rapid development of the economy of our country, the trend of rising progressively appears too in the burden of taxation of every area, but the accessional range differs greatly. The taxation burden of eastern municipality directly under the Central Government improves rapidly, the burden of taxation of coastal province of east rises very fast, and the burden of taxation of central and west regions keeps developing steadily.It is a dynamic index acted on and influenced together by a great deal of factors such as per capita GDP, GDP structure, ownership composition and trade structure have remarkable influence on the difference of regional burden of taxation, levels of regional burden of taxation with high proportion of primary industry are generally relatively low, the level of regional burden of taxation with high proportion of the tertiary industry is relatively high. The tax allowance that our country implements at present depend mainly on the economic nature and area, this kind of preferential policy lays particular emphasis on total amount of attractedoutside capital, but is at the cost of the type of enterprises of different ownership and difference of burden of taxation of different areas. Under the situation that other factors do not change, the establishment, change of the tax rate and adjustment of the tax allowance measures of the tax category will all influence the quantity of the tax revenue and the level of burden of taxation between domestic-investment enterprises and overseas-funded enterprise. The difference of tax collection and management quality has remarkable influence on the regional burden of taxation too.The level and difference of the burden of taxation of every area and its impact on economy and the society are diversified and very deep at present. It has aggravated the disequilibria of regional economic development of our country further at first, make two-tire feature of economic development of our country more outstanding; Secondly it is unfavorable to fiscal balance and government's public service function.. The calculation of the level of regional burden of taxation is relatively easier to finish, but to judge the rationality of bearing competence and difference of the regional tax revenue is a very difficult subject. We should not make decision simply based on the amount of real taxation burden. Perhaps we are unable to calculate the some piece of only so-called optimum value of the burden of taxation of some district accurately, but it is still basically feasible to compare relative rationality of the regional burden of taxation in the extensive block and define. We can try to set up the economic model of the regional burden of taxation after solving the basic mode and principle of confirming the level of regional burden of taxation, calculate reasjnable block relatively, then compare the theoretical taxation with actual taxation and judge their rationality.It is a huge systematic project to choose the countermeasure of adjusting the difference of burden of taxation among the areas. Itincludes quickening the steps of developing the central and west regions, advancing the development of coordination of the regional economy, optimizing the structure of tax system, carrying on the tax collection and management reform, standardize tax revenue return and complete network in such relevant measures as the system of transfer payment, etc.