Research On Adjusting Tax Policy In Face To Tax Competition

In this paper, I master Tax Theory, World Economic, Public Finance and other basic principles of Economics, referencing existing analysis and empirical analysis, using qualitative analysis and game theory, and recognizing China's advantages and disadvantages in tax competition, to research the effectiveness of tax policy in tax competition and find the encountered deficiencies and propose suggestions. The main contents of the article has the following aspects: First, discusses the research background and significance of domestic and foreign academic research on tax competition and introduce research ideas and research methods, present the advantages and shortcomings. Second, analyze tax competition, explain the causes of phenomena, concepts, meaning, classification, and means, analyze effects on a country's economic , describe its positive and negative effects. Also cited the OECD on harmful tax competition and the elimination of measures to determine the standards, and clarify the existence of tax coordination and inevitability of the development trend of national tax coordination and tax coordination practice. Third, research the effectiveness of tax policy in tax competition drawing on quantitative analysis of some scholars. Also analyze the problems in tax competition. Finally, propose suggestions. These are all reasonable to promote the capital allocation in industries and areas. And the research plays an important role in achieving long-term stable development.