Research On The Influence Of Government Competition On The Structural Income Disparity Between Urban And Rural Areas Under The Tax-sharing System

Since the tax-sharing reform,China's Gini coefficient has start ed to rise.Although there are fluctuations,there has been no warni ng line below 0.4 in any year.In the same period,China's urban and rural residents' income ratio has remained stable for a long pe riod of time at a relatively high level after a short period of declin e.A large number of literatures confirm that the income gap betwe en urban and rural residents is the main cause of residents' incom e gap.Therefore,since the tax distribution system,the income gap between urban and rural residents in China has been wide.And the situation is more severe.After the tax-sharing reform,local govern ments have relatively stable and independent fiscal revenues,and th eir enthusiasm for autonomous development of local economies has increased.At the same time,the mismatch of local government fin ancial power and authority has increased pressure on fiscal revenues and expenditures;this has led to prominent government competitio n in this period of time.theme.Since the results of government co mpetition may affect the income gap between urban and rural resid ents within the jurisdiction,the government competition since the ta x distribution system may be one of the reasons for the large urba n-rural income gap in the same period.This is the starting point fo r the selection of this article.In the investigation of the urban-rural income gap,this paper a ttempts to explore the changes in the urban-rural income gap from a more microscopic perspective and replace it with the structural in come gap between urban and rural areas.The main purpose of this paper is to explore the impact of government competition on the s tructural income gap between urban and rural areas since the tax-sh aring system.First,using the normative analysis method,the provin cial government as the research object,reviewed the characteristics of the fiscal system before and after the tax distribution system,and analyzed the characteristics of the government's competitive beha vior before the tax sharing system,and then analyzed the features of the government's competitive behavior under the tax sharing sys tem through comparison.And the purpose,combined with related th eories,explored the impact of government competition on the struct ural income gap between urban and rural areas.Finally,using the e mpirical analysis method,taking the situation of Shanxi Province si nce the tax sharing system as an example,the main conclusions an d policy recommendations are as follows:(1)Under the tax-sharing system,provincial-level governments conduct competition around capital inflows,and the dominant party can narrow the structural income gap between urban and rural areas in the province.(2)Under the tax-sharing system,provincial-level governments are engaged in institutional competition based on the “restructuring of state-owned enterprises and supporting private enterprises”,and the provinces with advantages can reduce the structural income gap between urban and rural areas in the province.(3)The central government and provincial governments compete for non-tax revenue under the tax sharing system,which has led to local governments' dependence on land finance.Provincial governments do not have an advantage in competition and will increase their reliance on land finance,which is not conducive to narrowing the structural income gap between urban and rural areas.(4)Due to the low self-financing capacity of Shanxi Province and the existence of urban bias,changes in financial self-sufficiency caused by vertical government competition under the tax sharing system have no significant impact on the structural income gap between urban and rural areas.Finally,this paper proposes policy recommendations from two perspectives.From the perspective of horizontal government competi tion,the future should be “highly valued in capital introduction” an d “continue to reduce the proportion of state-owned enterprises” tonarrow the structural income gap between urban and rural residents in the jurisdiction;from vertical government competition From an angle of view,in the future,it is necessary to “improve the local f inancial self-sufficiency rate” and “reduce the local government's rel iance on land finance” to narrow the structural income gap between urban and rural residents in the jurisdiction.