The Theoretical Analysis And The Positive Research On The Tax Burden And Economic Growth In Zhejiang Province

The relationship between tax burden and economic growth has been the focus ofattention of academia. Foreign scholars had more in-depth theoretical and practicalstudy regarding this matter. For Chinese scholars before1990s, the research was mostlyabout the relationship from theoretical point of view. However, over the past decade,more and more scholars began to make various levels of practical studies of therelationship between tax burden and economic growth using advanced econometricanalysis method, with different conclusions due to different methods, but most of theresults is country-based, rarely region-based. This study is trying to apply advancedtechnology VAR analysis to the detailed analysis which is in a new perspective on thepractical relationship between the tax and economic growth of Zhejiang province.This study applies both qualitative analysis and quantitative analysis, mainlydemonstration methods, to the entire analysis of tax burden and economic growth inZhejiang province which is also based on the analysis of current Zhejiang tax incomesituation, giving conclusions: compared with the national tax burden level, far belowthe national level in Zhejiang province, for example, In2011, the national macro taxburden level reached18.98%, while only9.13%of tax burden level in Zhejiangprovince, is lower than9.85%, the relationship between tax burden and economicgrowth is a long-term equilibrium relationship in the Zhejiang province, there isnegative correlation between, and influence each other. Using VAR model to analysis ofthe tax burden on economic growth in Zhejiang province: the macro tax burden indiameter (LNTAX) on its own the added value of a standard deviation of the shockresponse of about0.0667, to the third period to achieve the most is about0.0908,gradually decline after the third period, to14tend to0; caliber macro tax burden(LNTAX) in response to the fiscal expenditure (LNBO) the first phase is0, thengradually negative response, the six phase to achieve minimum-0.0469, and thengradually approaching with0; the macro tax burden in diameter (LNTAX) a standarddeviation impact on GDP in the first seven period in the rise, and then graduallyapproaching zero. In diameter (LNTAX) to predict the macro tax burden is99.68%, theproportion of variance caused by LNTAX disturbance caused by LNBO disturbancewas0.3212%, the disturbance caused by LNGDP was0.0024%, with the passage oftime, from the other two factors of increasing the proportion of the disturbance, but before the period of14is not stable, basically stable after14issue.For the empirical conclusions, this paper puts forward some problems of theeconomy of Zhejiang province also, points out the deficiency existing in economy ofZhejiang province, puts forward reasonable Suggestions and improvement measures:reasonable allocate various types of taxes, the proportion between the strengthening oftax collection and administration, and reduce the loss of tax sources; advance inZhejiang province of the reform of the tax revenue, make the tax revenue into the scopeof the management of the tax revenue, for centralized management, reduce the cost ofthe tax revenue management; to strengthen the management of tax information inZhejiang province, the use of paperless technology, management, reduce the humanresources cost, improve management efficiency; promoting the comprehensive andbalanced development of the region, making the sound and rapid economicdevelopment in Zhejiang province, improve the level of economic development.