Tax-Sharing System And The Macroeconomic Fluctuation In China

Reform of taxation is an important way of macroeconomic regulation and control,and researches on the effects of tax reform draw the economists' attention.Due to the diversity of taxes and rates and the differences of levied vested,it is difficult to the study impact of the tax reform on the macro-economy.But under special taxation system in China,the tax changes will lead to changes of national tax rates or local tax rates,thereby affecting macro-economy.Therefore,it's practically significant to research tax rates and their impact on structural change,and to how to choose tax policy in order to achieve our current dual goals of "steady growth and structural adjustment".The article firstly describes the changes of national tax and local tax in total tax revenue and GDP from the macroeconomic data.It's not difficult to find that the total tax revenue to GDP ratio has increased year by year,and that the local tax increase is more obvious.So it is necessary to analyze the China macroeconomic impact of tax-sharing system from the angle of national and local tax policy.Thus,articles make researches from two aspects.In theory,with in the framework of New-Keynesian Economics and Chinese economic reality,we fully consider the national and local tax policy,and construct DSGE model under our tax system,then simulate the effects of tax policy of macroeconomic fluctuations.In empirical terms,the article selected macroeconomic variable data from 1994 to 2013 into DSGE theoretical model.The study comes to the conclusion that national tax policies will reduce output and restrain excessive economic growth in the short term.In the contrary,the local tax policies will create more jobs,increase economic growth and restrain inflation.In addition,macro-economy is more sensitive to the direct impact of local tax policies.Therefore,local tax policies should play a more important role in macro-economy.For a new round of tax reform,The research provides an evidence of the correctness of the theory and quantitative reference of operation.