Study On Status And Influence Factors Of The Growth Of Tax Revenue In Jiangsu Province

With the process of optimizing the tax system and deepening the economic institution reform being pushed forward in China after the 1994 tax separating reform, the tax increase shifted into a much higher gear so that the economic plans and financial policies are financed by the adequate tax revenue. For now, however, the excessively rapid growth of China's tax revenue may come with the side effect of economic austerity while the changes in the tax system and tax collection increasing the complexity of the factors affecting tax growth with the synchronization not being coordinated between tax growth and GDP growth. For the reason above, the research on the status, characteristics and influencing factors of tax increase becomes the concern of both the government and scholars.Taking Jiangsu as the example for its sound economic development and tax system, we analyze the current situation and characteristics of its tax increase. And by building a model, this article offers further insight into the analysis of factors affecting the high tax growth. Through the analysis above we attempt to offer policy recommendations for the coordinated development between tax increase and economic growth as well as the healthy process of tax system reform. This paper is structured as follows:The first chapter is introduction which mainly introduces the background of top selecting, aims, significance, content, methodology and technical route to be taken of the research. The innovation and deficiency will also be introduced.The second chapter is the theoretical foundation and literature review. This chapter first defines two main concepts namely tax revenue and tax revenue growth. Then we discuss the theoretical basis of the research in terms of tax multiplier theory, the relative price theory and endogenous growth theory. The domestic and overseas study about tax revenue and its growth status is also generalized including the relationship between tax revenue and economic growth, the supernormal growth of the tax revenue and the influencing factors of tax revenue growth, etc.The third chapter is the analysis of the tax revenue growth status and its characteristics of Jiangsu province. The current situation analysis is expanded from the two aspects of total amount and increment. And the characteristics analysis mainly relates to the gross, structural and regional characteristics of the tax revenue and its growth of Jiangsu province.The fourth chapter is the empirical analysis of the factors affecting the tax revenue growth of Jiangsu province. First of all, the theoretical framework of this chapter is discussed and on basis of that we build the econometric model. Then variable refinement, data specification and descriptive statistical analysis are carried out in terms of economic growth, economic benefits, industrial structure, the fiscal expenditure, inflation, collection and management efficiency respectively.Finally, we estimate and analyze the model. Through the correlation analysis the variables included in the model are screened, based on which we perform the multiple regression, analyze and explain the estimation results in detail.The fifth chapter is about research conclusions and policy implications.In this part we summarize the main conclusions, based on which policy advice aiming to promote the coordinated development between tax increase and economic growth as well as smoothing the process of tax system reform in Jiangsu province.