Research On Fiscal And Tax Policy Of Promoting The Development Of Small Towns In Jiangxi Province

Since the start of reform and openness, the Chinese economy is growing fast and now the Process of urbanization in China is moving more rapidly than any other country in the history of development.From1950s to1980s,the urban population in China was increased from70million to196million.But since the beginning of1980s,the rapid development increased the demand for labor force in cities, especially in the developed cities. Now there are about500million people are working and living in cities.Urbanization is beneficial to promote the rural population transferring to the towns, relieve rural employment pressure, drive rural Economic development, change the dual economic structure, and promote the sustainable development of regional economy. So almost each country is searching its own urbanization mode. According to the actual situation of Jiangxi, adopting the urbanization way" developing small towns", is accord with provincial condition of Jiangxi.Fiscal policy not only plays an critical role in national macro-control, but also provides policy support for the promotion of the economic development in Jiangxi Province, Continuously widening gap among different regions in economy and the level of social welfare is partly due to the imbalance in fiscal policy. Since the implement of the Reform and opening up policy, China has adopted preferential tax policies favor the southeast coastal areas, which lead to the overheated investment in coastal areas and downturn investment in inland. So the particularity of national prudent fiscal policy and the proactive fiscal policy in Jiangxi provinces in the process of development of the small towns must be considered. At the same time preferential tax policies must be adopted to improve the reemployed employment rate and provide long-lasting power and vast space for the market.This essay selects "study on fiscal and taxation policy to promote the development of small towns in Jiangxi Province" as the subject. By means of standard analysis, from the perspective of fiscal policy for the development of small towns, the essay in theory explains the basis of fiscal and taxation policy to promote the development of small cities and towns, and from a practical point of view the essay shows the necessity of fiscal and taxation policy to promote development of small towns, in addition, it elaborates the status and function of fiscal policy in the development of small towns. Second, it analyzes current problems existing in the adoption of fiscal policy to promote development of small towns in Jiangxi Province. Finally, combining actual situation, the essay makes proposals of some feasible suggestions of fiscal and taxation policy to promote the development of small towns in Jiangxi. The full text is divided into four parts, part one first describes the research background, significance, relative domestic and international research status, and then analyzes the main content and approach to the study, and finally puts forward innovation and inadequacies. In second part, small towns and fiscal policies are defined, based on the definition the features and functions of the small towns are well elaborated. And finally, on the basis of the analysis of the characteristics of the above concepts, the need for development of small towns is explained, as well as points out the status and role of fiscal policy in promoting the development of small towns. The third chapter is composed of three parts, first of all, it lists the existing fiscal and tax policies in promoting the development of small towns in Jiangxi Province. Secondly, it displays the problems of the existing fiscal policy to promote development of small towns in Jiangxi Province which are mainly as followings:complex financial allocations and grading, financial powers property rights are not uniform; imperfect transfer payment system, the lack of supervision for financial funds, finally it concludes the current problems of the tax policy in supporting the promotion of the development of small towns in Jiangxi Province, such as tax policy system of small and medium-sized enterprises is imperfect in small towns; resource tax burden is heavy and other factors including natural resources and agriculture-oriented province. The fourth section presents the recommendations and supporting measures of the fiscal and taxation policies to promote development of small towns in Jiangxi Province. First, in terms of fiscal policy, we should rationalize the relationship of the financial distribution and the scope of government powers property rights, improve the fiscal transfer payment system, establish the mechanism of supervision of financial funds, develop basic public services to realize public services equalization between urban and rural areas and secondly, concerning the tax policy, we must broaden the range of resource tax, adjust the resource tax system burden, and improve preferential tax policies of the emerging industry of small towns in Jiangxi Province. Finally, on top of the fiscal and taxation policies, the thesis proposes financial, environmental, land policy and other related supporting measures in order to jointly pr promote the development of small towns in Jiangxi Province.