Research On Incentive Of Tax Revenue Growth Higher Than GDP Growth Based On Public Expenditure

Since industrial and commercial tax reform in1994, tax revenue of China has made sustainable growth. Especially in1997, the growth rate of tax revenue exceeded economic growth rate, and enjoyed sustainable increase. In view of this phenomenon, this paper uses public spending as main means and adopts the government function, fiscal revenue to analysis the reason that tax revenue growth rate is higher than GDP growth rate from the aspects of the role of tax and the relations among financial income, public spending and GDP.Based on this research purpose and thought train, the first part of this paper, namely introduction part, mainly includes the research background, research purpose, research significance, research contents, research methods and data sources. Besides these, the paper elaborates paper frame, expected results and possible problems in detail.Part two, to define the tax, GDP, public expenditure and other related concept and summarize the related theories. Based on these, the paper generalizes and summarizes the influencing factors that tax growth rate is higher than GDP growth rate.Part three focuses on the purpose of the tax revenue, the function of the public expenditure, and the relationship between the tax and public expenditure. Part four, we describes the status and growth trend of tax growth and GDP growth, and some adverse effects that result from Tax Growth Higher than GDP Growth. Part five, based on public expenditures, we discuss the effects of tax growth higher than GDP growth. So the essay develops in three parts:firstly, the theoretical research of public expenditures growth; Secondly, the reason of public expenditures promotes social and economic development, how to bridge the gap of between China and developed countries, and promote the government transition. Thirdly, research on how public expenditures growth promotes tax growth.The results show that with the economic development, the government transition and expanding in the new period have effects on public expenditures growth. At the same time, the relationship that depending on each other and promoting each other between tax and public expenditures results to the rapid growth of tax. Therefore, in order to realize sustainable economy development, it needs to deal with tactfully the relationship among the functions of the government, GDP, tax, fiscal revenue and public expenditures. At last, we put forward some policy suggestions from the following aspects:promote coordinates development between tax and economic growth, realize tax function that from the people and giving back to people, make full use of public expenditure, realize the all-round development of economy and improve the comprehensive national strength, and government should improve administrative efficiency...