A Legal Research On Reconstruction Of Tax Power Between Central And Local Government

The division of tax power between central and local government is an inevitablephenomenon in all country. To a large extent, the tax revenue, which accounted for90%of thenational finance determine the government macroeconomic regulation and control ability andthe ability of public goods supply. Fiscal decentralization has always been one of theimportant subjects in governing and one hot research topic in the discipline such as publicmanagement and finance. In the view of political economy, taxation irelated to thegovernment the ability of public goods supply and scheduling resources ability. Whether in acentralized system government or local taxation decentralized government. In the process oftax right division, all should pay attention to coordinate the relationship between the centraland local governments, in order to reach equilibrium between each other.This article first analyze the problem of the division of tax power between central andlocal government under the background of “replacement of sales tax by VAT” tax reform.Then explores the immediate cause and Essential cause of the current unreasonable tax rightdivision between the central government and local government in many ways. At the sametime analyze the centralized system and local dispersion system and the moderate balance oftax right division between the central government and local government in the world. Finally,based on principle of tax legal doctrine and the principles of matching the finance rights andcentral land tax right division after the “replacement of sales tax by VAT” tax reform areproposed. Only follow the principle of tax legal doctrine, clarify confusion of the centralfinance rights and design good bill of value added tax to share and return according to thecharacteristics of the VAT can establish the scientific fiscal and taxation systems of modernfinance and tax legal system in our country.