| Along with the continuous improving of market economy system and the basical establishment of public finace’s framework, some problems of building local tax emerge gradually. It is faced to us that how to select the main taxes of local tax system to make up the losses of local financial resources, which is very controversial now. As for the choice of local main categories of taxes, how to avoid the distortions of investment and tax benefits is one of the problems we must pay attention to. Besides, the pathway of relying on investment to increase GDP won’t be effective, and the disadvantages of blind development about local government have been exposed, such as myopic investment, resources’waste, excess capacity, debts’increasing, etc.The growth of GDP last year was below 7% for the first time, and we’re faced with the China’s New Normal now. At this time, our country puts forward the structural reform of supply-side, hoping for eliminating backward production capacities, expanding effective supply, optimizing the industrial structure, creating a healthy and orderly market environment. In the face of a new round of government investment, we should try our best to prevent impulse of local government investment in different ways. Avoid getting into a vicious cycle of economy. With the help of improving local tax system, this article reselects major taxes which is independent of local government investment impulse, in order to regulate the behavior of local government investment, and make it return to its function as it should be.By means of qualitative and quantitative analysis, this paper analyzes the relationship between investment impulse of local government and value added tax, business tax, enterprise income tax and real estate tax. Firstly, the paper reviews the relevant literature about local tax and local government investment.On this basis analyze the impact of tax revenue on local government investment. Furthermore through the empirical method study the relationship between them, so that screen out the local taxes which are positively related to impulse of local government investment. The structure of the paper is:chapter one is introduction part, and mainly introduces the research background, selected topic significance, research ideas and methods, framework of this article, as well as the innovation and inadequacy. Chapter two is literature review section, and combs the literature related to both selecting major tax and local government investment. Chapter three is theoretical analysis of tax and local government investment impulse. Chapter four uses panel data, and analyzes the impacts of local government investment impulse on value added tax, business tax, corporate income tax and real estate tax. The last chapter lists conclusions and policy suggestions.On the basis of selected data and methods, the article draws the following conclusions. Firstly, local government investment impulse significantly increases the income of value-added tax and real estate tax, while there are no obvious effects on the corporate income tax revenue. Based on these conclusions, in order to prevent the local government investment impulse, the local share proportion of the value-added tax should be reduced, and the real estate tax can not become the main local tax. Besides, we should raise the share proportion of enterprise income tax to make up the shrink of local tax revenue that the reforming of changing business tax to value-added tax leads to.This thesis chooses the perspective of preventing local government investment impulse to consider how to select main categories of local tax system, which is the biggest innovation. So it puts forward new opinions on how to perfect the local tax system of our country. But the unavailability of relevant data and the nonstandard measurement of the local government investment impulse influences the results of empirical analysis. Besides, because of the single angle of view, the consideration of choosing main categories of local taxes may not be comprehensive. |
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