The Study On The Relationship Between Tax Structure And Economic Growth In China

The basic goals of national macro-control are economic growth, employment growth, stabilize prices and maintain balance of international payments. Economic growth is an important issue in economics. Taxation is an important economic tool, which is one of the main financial tools. Proper usage of tax is very important for economic growth. However, as the economy continues to develop, the current tax structure can not fully adapt to the economic environment, the biggest problem is that tax structure is irrational. Therefore, we should establish a reasonable tax structure.Firstly, this paper describes theories and empirical researches of tax structure and economic growth. Secondly, the paper explains the development process of tax system, the characteristics of China’s current tax structure. Then this paper analyzes the influence of the tax structure. Based on the provincial data during 1998-2012, this paper establishes appropriate econometric model. Through empirical analysis, we try to explore the relationship between the tax structure and economic growth in our country, including relationship between tax structure and economic growth, relationship between tax class structure and economic growth, the interactive influence of tax burden and tax structure, tax class structure to economic growth. The previous studies on the third aspect are less and that is the main innovation of this paper. Finally, on the basis of the study, we try to put forward reasonable policy recommendations for tax restructuring.Based on the data of China’s 30 provinces and usage of regression analysis, the results show that:VAT has a strong effect on stimulating economic growth; the influence of sales tax on stimulating economic growth is weaker; enterprise income tax hinders economic growth; the effects of consumption tax, personal income tax, urban construction tax and real estate tax are not clear. What’s more, the effect of turnover tax is not clear; income tax and resource tax will hinder economic growth; property and behavior tax is good for economic growth. Besides, the effect of sales tax on economic growth will become increasingly weaker, the effect of property and behavior tax will increase when the tax burden become lower.Based on the findings, we should promote "structural tax reduction" timely, establish the "dual body" tax structure, promote rational reform of resource tax, increase the proportion of property and behavior tax, promote coordination between taxes, and optimize the tax structure.