Theoretical Analysis On The Linkage Effect Of Value - Added Tax And Income Tax

In order to study the coupling induction from VAT and EIT by the analysis of the problem of the "double subject" tax structure model in the economic development to ensure the coupling induction can play an efficient role. Putting forward and establishing the "The Comprehensive Tax " and "Tax Joint Coordination Mechanism " to coordinate the tax economic function.The article study the coupling induction from VAT and EIT under the existing tax system and put forward to collect "The Comprehensive Tax ",ensuring the coupling induction can play an efficient role in stimulating economic development and increasing revenues.As we all know,VAT and EIT respectively collect tax on the basis of value added and the taxable income,but the actual tax has greatly cross overlap between objects(value added and the taxable income).Therefore,this kind of phenomenon implied on that under the premise of established tax rate that government collect only one kind of tax on its possible.This paper puts forward the viewpoint : The existing tax structure of the coupling induction theory from VAT and EIT and collecting the comprehensive tax on the basis of the coupling induction theory.The center of the article: Specification and the integration of VAT and EIT.By the time the internal and external conditions are ripe to implement the new income tax— "The Comprehensive Tax "(The article content),Putting forward and establishing the "Tax Joint Command"(Departments or Central).Solving the tax levy object overlapping phenomenon and playing the coupling induction from VAT and EIT to effectively improve and whole optimize the role of the tax regulation.In order to study the coupling induction from VAT and EIT,the article analyzes the tax elasticity index.According to the important status of VAT and EIT in national construction, economic development, tax revenue and the reform of financial and tax system, as well as the influence of both to strategic decisions of the market and business plan, and the economic effect of time and the internal logic relationship to establish the coupling induction theory between the VAT and EIT. The coupling induction theory respectively are: Reciprocity Effect, Synchronicity Effect, Mutual Damage Effect, Blanketing Effect. The theory is an interaction overall architecture rather than operating separately,and its essence is the competition interaction between tax interaction force. Part four linkage effect theory to strengthen each other and influence each other.If correctly and effectively using the tax theory, government will correctly guide the optimization and upgrade of industrial structure. prompting our country to persist in the important guidelines of "Scientific Development Concept" and accelerate transformation of the mode of economic development, and promote industrial upgrading.Gradually reducing the proportion of indirect tax, whose main form is the value-added tax and increasing the proportion of direct tax in which income tax is the main part. To imply the "Structural Tax Reduction" and revenue optimization balance and give full play to the interaction between tax and economic linkage effect. Enables the tax policies to respect objective law and trend of the economic development, and allow the market to play the decisive role in allocating resources. To ensure government give rein to macroeconomic regulation and control function, maintaining social fairness and justice, and building harmonious society.On the basis of "The coupling induction theory", the article studies the optimal proportion of VAT and EIT through empirical analysis and calculates the optimal EIT and optimal VAT respectively accounted for the proportion of tax revenue and GDP. Only by scientifically allocate the proportion of VAT and EIT and reasonable collecting, the national economy can be sustainable put forward.Otherwise,it will appear the phenomenon of "The Tragedy of the Commons ".Having a guiding significance for both in the economy sustainable development.The article uses the data(after 1994) to measure the significant of the coupling induction in GDP and conducts the model-data fit test(Sorting data, Improving the Cobb-Douglas function model, Calculating the variance and correlation coefficient, and the model passed the following test:t-test,F-test,R2-test,Goodness of fit-test).Empirical theory proves that the VAT and EIT theoretical simulation of the effect is very significant correlation and height fitting, which provides method, path and theoretical support to financial and taxation policies.