The Research On The Sharing Of The Central And Local Tax

Tax sharing refers to the central government and local government in a certain way todivide the tax revenue. Nature of tax sharing is to ensure that the central leadership, localeconomic situation, the effective realization of government public finance, the provision ofpublic goods. Our country began formal implementation of the tax system under the taxsharing classification, in January7,1994, since then, sharing tax as the main tax revenue inChina, providing financial security and economic support for the healthy development ofChina’s economy.This paper firstly expounds the basic theory of tax sharing, the sharing tax theories inwestern countries, summarizes the principle of division of income tax sharing.Secondly, divided into three layers and make a general analysis and description of ourexisting tax structure face. One is from the perspective of the tax system from the perspectiveof historical change and policy adjustment of China’s tax sharing, ultimately determine the taxsharing of positive significance to the economic development of our country. Two are fromthe sharing of the longitudinal study of two central, local tax perspective, to explore thedependence of central, local tax revenue and fiscal revenue, summarizes four main sharechanges and characteristics of tax. Three in Beijing, Shanghai, Jiangsu, Jilin, Hunan, Shanxisix provinces and cities in China as an example of the tax sharing and carried on the empiricalanalysis, examines the present shared tax share proportion and tax effect on the regionaleconomy, and summarizes four main categories of taxes has different effect on the economy.Based on the current tax system structure description of overall tax sharing, this paper pointsout that, whether local or central, sharing revenue and the tax revenue depends on the degreeof tax were higher than50%, shared tax income for local financial supply rate is relativelylow, affecting China’s local public goods supply, and the current tax sharing ratio influencethe development of regional economy, expanding the regional economic disparity, the tax isunreasonable, not conducive to regional economic development.Thirdly, by using the method of comparative study to focus on the study and comparisonon Japan, Germany, USA, and summed up China’s tax sharing inspiration and reference.Comparative analysis showed that, both the totalitarian state or decentralized state, to ensurethe sharing tax scale, to encourage additional local tax as the main body, adjust the sharingproportion according to the national conditions.Finally, based on a comprehensive analysis on the various, creatively to indefinitecoefficient model in the "camp to add" after sharing tax as distribution ratio is in the range of54.36%-60.09%, put forward the proper adjustment of income tax sharing ratio and overalltrain of thought, concrete construction of the local tax system and should follow the basic theprinciple of.