The Research Of Local Tax Competition In China

Athough China is a unitary state, but economy shunt especially decentralizationreform, tax competition between local governments is a kind of objective existence,the local government has not only become the independent economic interests ofeconomic main body, but also has the pursuit of economic interests means and tools,the pursuit of area economic development and prosperity is the behavior the main goalof. With the gradual promotion of fiscal decentralization, local financial interests areprominent, as the main source of local finance income-tax, is the local government ’score interests, especially the establishment of the tax-sharing system, localgovernment in income to enjoy a great discretion, in fiscal expenditure has a certainautonomy, similar to the West of the federal system country intergovernmental taxcompetition is thus produced.The article with " local tax competition ", from the local tax competition theory,clearly defined the" local tax competition " connotation, think local tax competition isa country within the different between local governments in order to maximize theirown interest and use tax measures to carry out the system and its external competitionbehavior and the game process, and on the theory of fiscal decentralization to local taxcompetition and the factors affecting the local tax competition brings the effectanalysis of local tax competition, some existing problems and characteristics, anddraw lessons from western developed countries, the United States, Germany, Canadaand developing Russia’s successful experience and failure lessons, combined withChina’s actual conditions, put forward our country local tax competition to build anew model of the way, and from the financial system, tax policy and administrationreform in three aspects, summarizes the norms of our tax competition measuresmethod.In this paper, the research methods, pay attention to the combination of theoryand practice, with the existing local tax competition as the starting point, pay attentionto objective analysis and problem analysis, the article discusses the practical course of fiscal decentralization in China, and analyzed the current situation of China’s fiscaldecentralization in the existing problems and the resulting consequences. The articlein question (background)--Analysis of the problem (effect)--problem solving(suggestions) the basic ideas, the use of abstract and concrete analysis, analysis ofcombining theoretical analysis and empirical analysis of a combination of researchmethods.