The Research On The Correlation Of State Tax Income And Economic Growth

The economy decides taxation, and taxation reacts to the economy, both of which exist between the dialectical unification relations. On the one hand, the economic growth dimensions will directly determine the size of taxation and the economic growth speed will restrict the growing speed of taxation revenue. In return taxation will bring influence on industrial structure, investment decision, consuming demand and economic growth by system designing involves tax type, tax rate and so on.Since 2001, the economy growth of Suqian city has been growing rapidly with an average yearly GDP growth rate for 13.16%. Many of the economic indicators have rised greatly, top ranking between all cities of Jiangsu province; The state tax revenue of Suqian has achieved yearly growth rate for 28.20%, much more rapid than economic developing. Value-added tax and consuming tax are two important tax types for state taxation. Their taxation subjects are sales income by commodity and labor as well as the appreciation value made by market player during manufacturing and circulation. Thus, these two tax types are highly correlative with economic growth. From perspective of state taxation, my paper is focusing to review and analyse Suqian city's economic developing for the study of its correlation with state taxation.It goes to expatiate the relation between tax revenue and economic growth based on element theory. Utilizing method of regression analysis and elasticity analysis, it studies the economic data happened from 2001 through 2010 to investigate the quantity relation between two parties. The relation analysis is conducted in terms of revenue scale, economy structure and state taxation in addition to the connection with the three industries and etc. As a result of the analysis, it proposes to speed up the taxation growth stably and improve the tax law as well as making efforts to adjust tax structure. Moreover, taxation needs to play an active role in pursuing a healthy and rapid growing economy of Suqian city through optimized service and enhanced tax collection management.