Research On The Impact Of China's Horizontal Tax Competition On Social Welfare

After the reform and opening up,the socialist market economic system implemented in my country has laid the institutional foundation for the economic linkage of the provinces.After the implementation of the.tax-sharing reform,the financial power of the provincial government has been significantly improved.The improvement of the market economy system has enhanced the liquidity of capital,which provides conditions for provincial governments to compete for a tax base and develop the local economy,while the "GDP-only" official evaluation mechanism has further increased the competition for capital between provincial governments.Competition with elements.In order to attract the inflow of working capital and factors,various local governments have continuously introduced various forms of preferential tax policies,such as fiscal incentives,relaxation of collection and management efforts,etc.,to reduce tax burdens.The direction of government reform should be oriented to meet the needs of residents and improve the welfare of residents.For this,we must continue to improve and enhance people's livelihood.Under the pressure of political promotion,the tax competition between local governments has caused a large amount of fiscal expenditure to be used in projects with outstanding short-term political performance such as infrastructure construction,resulting in redundant infrastructure construction and public services that involve the actual welfare level of residents.Insufficient supply.Therefore,there is a certain relationship between tax competition between local governments and residents' social welfare.This article uses the data of 31 provincial governments in my country from 2009 to 2017 as a sample to study the impact of tax competition between provincial governments on social welfare levels,and provides a theoretical basis for improving the efficiency of public goods supply,improving the supply structure,and improving the level of residents' welfare.There are six parts in this article: The first part is an introduction,which explains the background and significance of the thesis.And combed the research angles and achievements of scholars at home and abroad.It introduces the research methods of the thesis and the possible innovations and deficiencies.The second part is the introduction of theory,first elaborating the definition of tax competition and the concept of social welfare.And define the concept of horizontal tax competition and social welfare studied in this paper.Introduced tax competition related theories from three aspects of public choice,fiscal decentralization and institutional competition,introduced social welfare related theories from Pigou's welfare economics,Hicks compensation principle,and elaborated horizontal tax competition from both aspects of promotion and suppression Mechanism of action on social welfare.The third part is an analysis of the current situation,which introduces details of horizontal tax competition in terms of tax preferential competition,fiscal rebates,fiscal awards and tax purchases,as well as policy documents published by the official websites of provinces,the National Audit Office,and local audit offices.Manifestations.The ratio of the national macro tax burden to the province's macro tax burden is used to measure the current status of horizontal tax competition across the country and provinces and cities.Analyze the current state of my country's social welfare from the six social welfare-related fiscal expenditures of residents' economic life,education,entertainment,social security employment,medical assistance and living environment,and the welfare level of residents from the five sociological perspectives of residents' economic life,employment,consumption,medical care and environment.The fourth part is the empirical test.It first introduces the three commonly used spatial measurement models of spatial lag,error and Dubin,as well as three common test methods: Wald test,likelihood ratio test and Lagrange multiplier test.The indicators of social welfare,tax competition and control variables involved in the demonstration are introduced and the data sources are used,and the spatial matrix based on geographical proximity,economic distance and geographical economic intersection is constructed.By measuring the Moran index,LM and Robust LM tests are carried out to determine which spatial model is specifically applicable,and the Hausman test is used to determine which effect is applicable,and finally determine the six specific spatial measurement models that are more applicable to welfare expenditures and residents' welfare levels,and Conduct empirical testing.The empirical results show that my country's horizontal tax competition has an inhibitory effect on the six welfare expenditures and residents' welfare levels,and the competition between the geographically adjacent provinces is the largest.Most welfare expenditures are spatially imitative.The fifth part is the analysis of the problems and causes of horizontal tax competition,combined with empirical results,it analyzes the problems of horizontal tax competition,such as bottom-up competition,damage to residents' welfare levels,and the squeeze effect of developmental welfare expenditure.And from the four aspects of the financial and taxation system is not perfect,the assessment mechanism is unscientific,the communication channel is unblocked,and the expenditure structure is unreasonable.The sixth part is policy suggestions,combining the problems in Chapter 5 and the reasons behind it,giving policy suggestions from four aspects: deepening the reform of the fiscal and taxation system,establishing scientific official assessment methods,strengthening intergovernmental exchanges and cooperation,and optimizing the provision of public services.Specifically,it includes determining the financial and administrative rights of local governments,establishing a local tax system,improving the transfer payment system,and regulating vicious tax competition.Welfare expenditures accounted for the proportion of fiscal expenditures,especially development welfare expenditures,employment rate,the number of health technicians per 10,000 people,environmental governance,public service supply level and other indicators into the assessment system,and give a greater weight ratio.Jointly establish a collaborative development platform to clarify the responsibilities that each region should undertake in collaborative development.Adhere to the people-oriented service concept,the survival welfare expenditure and the development welfare expenditure are jointly improved and developed together to improve the effective public goods for the residents.