The Perspective Of Public Finance Of Local Tax System On The Level Of County Government Reform

In the year of 1994, Chinese government carried out the tax sharing system reform for the demand of the construction of market economy mechanism and established a preliminary framework of local tax system through changing the original variety of systems. In this way, this country aroused the enthusiasm of the local government effectively. At the same time, it increased the central and local tax revenue and fiscal revenue steadily and ensured the stable position of local government tax revenue as the main source of the fiscal revenues as well. However, the reform of the tax sharing system was based on traditional fiscal framework, and this made it was not suited the requirements of the current public finance. Besides, in the process of 20 years of operation, as a main source of local fiscal revenue, update construction of local taxes income did not catch up with in time and less restrictions on it, which caused the backward of local taxes income and the imbalance of local revenue and expenditure, and revenue of local government to make ends meet. As a final result, the phenomenon such as debt, land finance turned up, affected the harmonious development of local economy and the overall development of the national economy.This paper is based on the perspective of public finance, and takes Ningbo Daxie Development Zone as an example, on the level of county government and from the theory of local tax system research. Through the empirical analysis of the basic structure of local tax system and balance of payments, then put forward the unbalanced problem of current local fiscal revenue and expenditure, and analyzes in detail the deep-seated reasons for this phenomenon: the main reason is that the local tax system, which as the main source of local fiscal revenue, itself has its disadvantages, such as the independent right of tax of local government is too small, lack of duty, less of taxation collection and corresponding supporting measures is imperfect and so on. These all aspects urgently need to be improved. Finally, this article focus on the main contradiction between local fiscal revenue and expenditure and the deep thinking on how to improve our local taxes system at the county level. In this paper, author hold the view that relevant departments should further the scientific scope of taxation, making local tax clear, perfecting the collection and management system, reasonable division of financing and improving the supporting measures and so on. These all above are based on the principles of benefit to optimization of the resource configuration, to meet the local public expenditure and tax cost minimization. Through the above analysis and exploration of a systematic thinking, the author of this paper hopes to provide some references for the reform of tax system in the next step.