A Research On Tax Horizontal Transfer In China

At present, the tax revenue accounts for more than90%of the state revenue. Thetax revenue is the main source of the local government revenue. It is a guaranteedsource of funds to infrastructure building, public goods and services providing, andeconomic development. In general, the ownership of tax revenue should match withtax sources and tax undertakings. Once they don’t match with each other betweenlocal governments, the tax horizontal transfer occurs. The direction and degree of thehorizontal transfer will not only exert a direct effect on economic interests of differentregions, but also indirectly affect the overall balance and harmony of the economicstructure of the country. The horizontal transfer tax will reduce the local financialresources, aggravate the regional gap, and reduce the efficiency of the economy. Thisis not good to protect resources and improve the investment environment. At the sametime, it affects the image of the government and the scientific decision-making system.Therefore, it is very important to grasp the accurate allocation status and straightenout the relationships of the horizontal tax among governments by quantifying thedegree of inter-regional tax horizontal transfer.Therefore, the dissertation carries a full range of research on regional taxeshorizontal transfer sampled on China’s31regions from2003to2011. On the one hand,the dissertation measures the deviation between the tax and the tax resources, theamount of the deviation and the discrete coefficient of the tax revenue in differentregions. Then, it concludes a statistics that there exists a serious departure betweenthe tax and the tax resources. What’s more, it summarizes the characteristics of thehorizontal tax transfer in china. On the other hand, it analyzes the adverse impacts ofthe regional tax lateral transfer. Then, this dissertation probes into the specific causesof the regional tax horizontal transfer from the aspects of the collect tax, theinterregional management, the resource products price distortions, the transfer pricing,the tax system design and the tax competition and so on. In the meantime, it not onlyevaluates the current policy in solving the regional tax horizontal transfer, but alsopoints out the significances of the successful practices of the foreign area lateral taxallocation policy to China. In consequence, based on the actual situation of China’seconomic development, this dissertation puts forward with relevant suggestions in purpose of improving the fiscal and tax system. At last, the dissertation achieves aconclusion of the basic essence.