Research On The Relationship Between Horizontal Tax Competition And Public Goods Supply In China

In the market economy,competition is ubiquitous,and local governments in China are bound to have competition in tax work.Before the reform of tax distribution system,our country mainly implemented the financial system of unified collection and control of expenditure.Local governments,on behalf of the central government,did not actively promote economic development.Therefore,in this case,tax competition does not exist.After that,China carried out the reform of fiscal decentralization system,which made local governments have relative independence and autonomy in tax revenue,and also have a certain degree of discretion.It gradually became an independent economic interest subject.In order to achieve the goal of maximizing their own interests,local governments began to compete more and more fiercely for tax resources.In addition,under the pressure of the performance appraisal system,local officials have also become incentives for local governments to compete in tax revenue.This has also caused some problems in the supply of local public goods,such as distorting the supply of local public goods by using more financial expenditure in projects that show better performance.Public goods play an important role in the whole process of social development.Its own characteristics lead to the failure of market supply.In order to solve this problem,the government should generally provide public goods,while in China,the local government is mainly responsible for the supply.In addition,the government has a variety of sources of revenue,among which tax is mandatory and stable,which has become the best source of government revenue.At the same time,as an important form of local government competition,tax competition and public goods supply are closely related.Tax competition does exist among provincial governments in China,which will undoubtedly have an impact on regional economic and social development.Generally,tax is regarded as the price of public goods.Therefore,tax competition is bound to be closely related to local public goods.By studying the relationship between horizontal tax competition and local public goods in China,and then putting forward improvement measures,it will help to standardize local government tax competition,optimize the supply structure of public goods,promote the effective supply of local public goods,and improve people's livelihood.This paper is mainly divided into the following five parts.Part ?: Introduction.Starting from the background of tax competition and combining the theoretical results of tax competition and public goods supply at home and abroad,this paper defines the concepts of horizontal tax competition and local public goods supply,and introduces the ideas and methods of this study,as well as the innovations and shortcomings of this paper.The second part: theoretical analysis of horizontal tax competition and public goods supply,and also explains the impact of tax competition on public goods supply.The third part is about the current situation of horizontal tax competition and public goods supply.Obtain objective law through experience observation.First,introduce the causes and main forms of horizontal tax competition in China,and use relevant data to measure the level of tax competition.Secondly,it introduces the current situation of local public goods supply in China from two aspects: the total quantity and structure of public goods supply.Part ?: Empirical test on the relationship between horizontal tax competition and public goods supply.Using panel data model and relevant empirical analysis method,this paper illustrates the relationship between tax competition and public goods supply,and further tests the impact of VAT,business tax and enterprise income tax competition on public goods supply.In addition,this paper also compares and analyses the differences between eastern and Western regions.Part ?: The conclusions and policy recommendations of this paper.Re-combing the conclusions of this paper,but also put forward relevant policy recommendations.