The Impact Of The Second Five-year Period Tax Reform On The Regional Economic Development In Northern Shanxi

Since the reform and opening up, the economy in our country maintains high growth,but the economic gap among eastern region, middle region and western region is moreand more larger, which affects the sustainable development of the national economy.Inorder to reduce the adverse affects of uncoordinated regional economic development, thecountry has already implemented for the western development strategy, and promotedeconomic growth in less development, but this gap is widening.Therefore, the countrymust respect for the laws of the market and actively play the government’s macro-controlfunctions. But taxes as the government’s macro-regulation of the economy play animportant role in promoting the process of regional economic development..The currenttax system further improves on the basis of the tax system in1994, and it is a time ofeconomic and social requirements. But in recent years, the socio-economic environmenthas a great change, and a defect of the existing tax system is increasingly exposed, whichmade conflicts of economic society more. So second Five-Year period of tax reform isimperative. Northern Shaanxi as the country’s important energy base, its economicdevelopment related to the development of national economy and the building of nationalharmonious society. Therefore, under the premise of national policy support, it has greatsignificance in giving full play to the role of tax regulation for northern Shaanxieconomic. In this paper, on the basis of the feasibility and necessity of the secondFive-tax reform, determining second Five-Year period of tax reform goals, I explore theintrinsic link of taxation and regional economic development, and analysis of tax impacton the regional economy.At the same time, I review the current tax system set, combinedwith the Northern Shaanxi’s economic development, deeply analysis of the impact of thecurrent tax system on the regional economic development in Northern Shaanxi. Finally， in order to eliminate the adverse effects of imperfect tax policy, promote coordinatedeconomic development of northern Shaanxi region, by summing up experience and beingbased on national conditions, I proposed tax reform policy proposals.