Research On The Law Regulation Of Local Government’s Vicious Fiscal Competition

In Western federal countries, local governments have their own fiscal authority andexpenditure responsibility, by reducing the effective marginal tax rate to attractresidents, business and capital is an important economic policy, local governments topromote local development, and subsational tax competition is a long been a concern ofscholars. Before China’s reform and opening up, as has been implemented highlycentralized financial management system, the local government has no economic interestand tax authority itself, does not exist in inter governmental fiscal competition. Since thereform and opening up, with the gradually advance the fiscal decentralization, especiallythe establishment of the system of tax distribution. Local government expenditure havea certain autonomy, enjoys great discretionary power in revenue, the intergovernmentalfiscal competition similar to the Western federal countries also emerge as the timesrequire. What happened in Zhejiang a "county to the district" time is the localgovernment fiscal competition results. How to understand, evaluate and regulate thefiscal competition among local governments in China has become an imminent problem.In this paper, from the perspective of law, the general theory of the use of fiscalcompetition among governments, the problem of fiscal competition among localgovernments in China, and puts forward the concrete ideas of our government’s viciouscompetition.The full text is divided into four chapters:The first chapter introduces the origin of the intergovernmental tax competition,ideas, concepts, including the basic classification of the fiscal competition, is thetheoretical basis of the article.The second chapter is the focus of this paper. This chapter first summarizes thespecific performance of China’s intergovernmental fiscal competition, including tax lawrelief, financial return, tax, business tax, human induced tax, tax, tax imposeddiscounted the abuse of discretion, expenditure structure distortions and arbitrary relief fees. Secondly, the intergovernmental fiscal competition social harm, including therigidity of tax law, tax revenue loss damage, expenditure structure unbalance anddisrupt the order of financial distribution etc.. Finally, analyzes the causes of theformation of China’s local fiscal competition, the imperfect tax system is thefundamental reason, local fiscal burden is the direct reason, local officials selfishconsideration is itsThe third chapter is the foreign local fiscal competition legal regulation experience,including fiscal coordination experience, American Japanese fiscal transfer paymentexperience and financial distribution experience in germany.The fourth chapter is this article writing difficulties. This chapter focuses on theexisting problems and causes of fiscal competition among local governments in China,on the basis of the relevant national regulation of financial competition’s practice, putforward normative legal countermeasures of China’s Intergovernmental Fiscalcompetition. Including: promoting taxation in the constitution, enhance the legislativelevel; configuration administrative science, reasonable division of property rights; thegovernment functions as the foundation, the financial transfer payment reconstruction;strengthen fiscal supervision of law enforcement, establish accountability mechanisms;establish the finance and taxation litigation, set up tax procuratorial organs and othermeasures.