Study On The Reform And Development Of China’s Tax System Since The Reform And Opening Up

Since the reform and opening took place in China, the tax system has gradually become the key point of economic construction, and it also played an important role in the economic reforms. The tax reform in1994, established a set of complex tax system, but at the same time, the implementation of the central and local tax-sharing system made the tax system appearing some new problems. The tax power distribution between the different government level which is called the vertical structure of taxes gradually becomes the focus of the research, and the problem of the allocation of tax power becomes an important content of the tax reform.Based on the intergovernmental fiscal relations theory, the theory of fiscal decentralization and public goods theory, the article takes the time sequence of China’s tax system reform as the main line, and sorts out the the four stages of China’s economic reform development. It sums up the historical experience and the basic characteristics of the evolution of China’s tax system, and tries to find out the main problems and the causes of the current tax system. Then based on the analysis, this paper analyzes the game theory model. The empirical results show that we should promote the rational pattern of the establishment of the tax power division between central and local governments by the right of tax game in order to protect the interests of both idealized to achieve the optimal allocation of resources.Finally, combining with the contemporary situation of our country, the paper puts forward policy suggestions as follows:we should properly divide the tax right between central and local tax legislative and strengthen tax and legal system; we should improve the tax structure and adjust the local government main taxes; we should standardize China’s central and local tax collection and administration division of authority and perfect the judicial guarantee system; we should adjust the vertical division of tax and be allocated on a reasonable basis to the scope of rights and financial power of the central government and local; we should improve and perfect the transfer payment system, and regulate the local charging rights.