Research On The Taxation Distribution Between The Central And Local Government In China

The relation of taxation between the central and local government is an important part in thetax share system, which established in1994. The tax share system bases on the principle of marketeconomy and the public finance theory. The share system deals with the fiscal distribution betweenthe central and local government, which clears the finance right and financial resources between thegovernments to ensure the achievement of business right and full working of function ofgovernments. Under the revenue system, tax is the main source of fiscal revenue, so that thetaxation distribution between different governments is directly affect the finance balance betweenthe governments of different levels, the stability the economy, the supply of public goods. Therefore,this paper deals with the taxation conditions of the relationship between central and localgovernment and tries to go further research on base of the achievements gotten from the researchwe have done.The theory of the relation of taxation between the central and local government t is a hugeissue. The author specifies it into three points: the distribution of the tax income, the main taxes, thetax structure, which analyzes the basic situation of China’s central and local government revenue,the problems and related causes, by learning from foreign experience, policy recommendations tofurther improve China’s central and local intergovernmental tax division problem. The distributionof the tax income and the main taxes and the tax structure is belonging to the equal level. The studyalso relates to the taxation right, and the distribution of Taxation right and the distribution of taxincome do at the same time. The former is a guarantee of the latter and is a dominant role, whichdecided to direct the allocation proportion of tax revenues among all levels of government.