The Research Of China’s Central And Local Government Tax Power Division

This paper studies the tax power division between China’s central and crovincial local government, which is built on the division of powers as a recondition, tax categories division as a base, and make tax legislation, tax collection into the target of building a modern financial management system of revenue-sharing. Research focuses on rationalizing revenue divided between the central and local government. This paper defines the concept of tax power, clear he definitions of Tax right and the Tax right division, demonstrate the heoretical foundation of the tax division. In this paper, after reviewing China’s ax rights division on the basis of history, the actual situation of China and especially in Shanghai were analyzed, using large amounts of data, through respectively, from the aspect of the tax legislative and tax collection, tax revenues ownership rights to evaluate the performance of tax division. The research shows that the current tax income division has many problems:the inance resource and governments’duty do not match, the local government do lot have enough local tax, the high proportion of shared taxes, taxes not meet he requirements of development, etc. and analyzes the existing tax rights Iivision’s negative impact to Shanghai and the eastern region of China. From an nternational comparative perspective, this paper studies the United States, Germany, Japan, France and other countries’tax system, analyzes the nfluencing factors in right tax division mode selection, found that at all level’s government have some kind of tax legislative and relatively independent main axes, and the main purpose of the tax revenue allocation is to provide financial protection for government to fulfill its responsibility.This paper argues that the basis of the tax division of the reform depends on the establishment of the right to promote scientific development, social justice and market a unified tax system; premise of the reform is to improve the powers and expenditure responsibilities; core of the reform is the adjustment of government tax revenue divided, and try to give a new tax division plan between central and local government. This plan connects with China’s new round fiscal and taxation system reform. According to considering the tax attributes and features to minimize the shared taxes, to expand local taxes and direct taxes, the reform put more attention on Value-added tax, Consumption tax, Real estate tax, Vehicle and other large personal property tax, etc. and adjust the ratio of central-local distribution. Meanwhile, the paper also gives specific proposals about giving local government moderate tax power, improve tax collection mode, etc.