The Analysis Of Economic Factors Affected In Tax

Since the application of reform of tax-sharing system in 1994, there is a rapid increase in our tax revenue. Tax revenue ranges in accordance with the developing situation of every region. In turn, it also influences the developing situation in every region and makes the developing gap larger.Based on mentioned above, this paper selected three economic indicators-GDP, industrial structure and fiscal expenditure and conducted qualitative and quantitative research on the relation between these three indicators and tax revenue. The research in conducted in east China, middle China and west China respectively. Based on the result of the research, this paper provided suggestions on how to improve the steady increase of tax revenue and reduce the developing gap between regions.In this paper, first, the author explained and analyzed some theories, such as taxation theory, economic growth theory and regional economy theory and summarized the three economic indicators based on the past research results. Then, the author used descriptive statistical method to analyze the characteristics of tax revenue and the developing situation of the three economic indicators respectively in east, middle and west China. The author conducted regression analysis on the panel data of 31 cities nationwide during 1995 and 2014. While analyzing different regions, tax is considered as explained variable and GDP, three-industry added value and fiscal expenditure are considered as explaining variable. Finally, the author brought up three suggestions based on the research result. First, promote a sustainable growth in economy and meanwhile, maintain a stable increase in tax. Second, optimize the industrial structure and increase the proportion of secondary and tertiary industry. Third, speed up the reform in financial and taxation system and promote a rational growth in tax.