The Local Tax System Problems And Countermeasures In China

Taxation has existed since ancient times, during the Slave society, the feudal societyand the capitalist society.And in socialist society, tax revenue still exists. In modernsociety, tax revenue is not only a way for a state to obtain the government receipts, butalso the basic form and main original of it. Therefore, taxation has a great influence onthe development and economy of our government, as a major economic lever for thenational economy macro-control. Since the founding of New China, the tax system hasundergone a process of establishing and increasing promotion along with the reform ofChina’s political and economic system. During this process, the Local Tax Systems alsotake shape of the prototype.This paper describes the system of local taxes and local taxes and local tax systemmeaning generation, through the history of the evolution of the Local Tax SystemReview.Especially, the Tax Distribution System set in1994created the conditions for theestablishment of local tax system in China, and fixed the distribution relationshipbetween the central and the local tax system, which was also attribute to form of the localtax system with the business tax, income tax, property tax. This initially laid thefoundation for the local tax system. At present the current local tax system has beenmature after a series of adjust men in tax share, rural tax reform, and export tax rebatepolicy, which has run for years to promote the development of the socialist market andmade a positive contribution to the sustainable, healthy and rapid development of localeconomy.From the tax jurisdiction, tax structure, tax income security systems, the local taxsystem problems was analyzed, tax rights division, tax power is highly concentrated,powers and tax power was mismatched, tax rights are not clearly demarcated and otherissues. Local tax structure exists between central and local taxes criteria for theclassification is not clear, shared taxes and more; tax structure set unscientific; low levelof local tax legislation, legal norms shortage. Local collection agencies clearly definesfunctions, institutional settings redundancy, agreement and retaining of tax system lag set was incomplete. Through various countries on the international experience in buildinglocal tax system were compared with reference. At last, from the local tax authorityperfect division of the local tax structure and tax income security systemsperspective,the countermeasures and suggestions of the local tax system was improved.