A Study On Perfecting Local Tax System In China

The tax system had lasted for more than 2600 years in China since the earliest tax system founded during the period of Spring and Autumn.The tax system had experienced numerous times reform during this period.The tax sharing reform is undoubtedly the most deep financial management system reform after the establishment of new China, which was recommended in 1994.This reform based on the division of duties,divided tax categories between the governments at all levels,determined the ownership of tax revenue, brought the governments at all levels their own sources of revenue.It made a great contribution to the development of the regional development and the financial resources of the central government.The local tax system has many problems such as the lack of the local main tax category,the tax division is not reasonable,the local tax income scale is small,the operation is stable and the local tax system reform is seriously lagging behind.These problems are due to the lack of the legislative responsiblity and so on.These problems make the local government fiscal revenue and expenditure gap, relying on the centralgovernment transfer payment subsidies to local financial income at the same time, also led to many irregularities occurred, reduce the efficiency of capital and increase the burden on the people, damage the image of the government.The experience of the local tax system construction in the developed countries is of great significance for our country to perfect the local tax system:the first is dividing the tax right with the law according to the governance and combining the centralization and decentralization together;the second is perfecting the local tax system continually;the third is a complete tax collection and management system.The local tax system should be improved in the following four aspects combined with the actual situation in China and the experience of foreign countries:the first is making clear the goal and the principle of local tax system to ensure that the reform of local tax system in line with the requirements of the new round of tax reform;the second is dividing the powers and the tax right reasonably based on the characteristics and the scope of local government functions and lower the tax legislative power moderately;the third is to speed up the perfecting of the local tax system,choose the local main tax category reasonably,determinine the short-term and long-term goals respectively,levy the ecological tax,the estate and gift tax and the social security tax;the fouth is perfecting the supporting system such as the transfer payment system and the tax information sharing system.