Research On Chinese Regional Macro Tax Burden And Tax Structure Based On Economic Growth

Chinese GDP and tax revenues are growing rapidly since the reform of tax-sharing system.Due to the affection of geographical environment,regional conditions and national macro-control policies,it leads to the exacerbation of obvious disproportion in regional economy.As the main source of financial revenue and typical method in macro-control,tax has the significant impact on the regional economy.Therefore,it becomes particularly important for all levels of governments to adjust the tax burden and optimize the tax structure to promote regional economy.Chinese academics have studied on the reasonableness of macro tax burden and the optimization of tax structure for a long time,but most of which are focused on the nation rather than the area.Even though there exists a few studies that focused on regional tax,but they were only discussing the reasons of tax differences.On the premise of economic growth,this paper uses theoretical research and empirical research to describe the differences of the regional tax burden and tax structure.Then measures the optimal tax and the optimum path of tax structure in eastern,central and western areas.The main contents and results are as follows.First,it gives an introduction of background,significance,summary of domestic and abroad researches.Then,it states the basic theory of regional tax burden and structure,which makes a theoretical foundation for measuring regional optimal tax burden and structure.Second,starting from the existing researches of macro tax burden and tax structure in our country,I made innovation research on regional macro tax burden and tax structure in our country which based on maximizing economic growth with a new perspective.The descriptive analysis shows the present situation and differences of the regional macro tax burden and tax structure in our country.Then I measured the regional optimal tax burden on the basis of professor Ma's concave function model,which shows the result of the optimal tax in eastern,central and western areas were 10.43%,16.82%and 13.29%.It indicates that the tax burden for eastern and western areas should be shorten while be increased for central area.In addition,in order to seek the optimal path of tax structure,I referenced the Arnold's(2005)method to accomplish empirical analysis.The result shows that the resources tax and property tax in all regions produced inhibition on economic growth.And the individual income tax and corporate income tax stimulate the economy in central-western area while having opposite influence on eastern area.Circulation tax is good for the western economic growth,but has obstacles on central economic growth.Finally,the paper gives the summaries and suggestions by combining the previous results.(1)Establishing a tax system mode of "double subject" which integrates turnover tax and income tax to increase the proportion of direct tax gradually and optimize the ratio of direct taxation and indirect taxation.(2)Reforming and improving all kinds of taxes such as making better use of tax policy,establishing an income tax system with combination of synthesis and having classification to raise the proportion of income tax.(3)Regulating the relationship between central and local government about tax.That means the central government should delegate the authority of tax to the local government properly,which makes the local government can execute adjustment of tax burden level within a certain scope.This paper has completed some reasonable and feasible study on optimal regional tax burden and tax structure based on the economic growth,which provides the certain reference for fiscal policy and tax reform in our country and promotes the regional economic growth in China.