Research On The Influence Of China's Tax Decentralization On Industrial Structure

Tax decentralization,the division of taxes between the central and local governments,is an important part of the construction of local taxation system.On the one hand,the local taxation system is an important part of the national taxation system.,and the improvement of the local taxation system has promoted the reform of fiscal and taxation and the construction of modern fiscal system;On the other hand,local taxes are the main source of local revenue.At present,China's industrial structure is constantly being optimized,but compared to high-income countries,the proportion of the tertiary industry to the GDP is still very low.There is still much room for the development of the tertiary industry and it is necessary to continue to promote the optimization and improvement of the industrial structure.And there are some problems in the construction of China's local taxation system.For example,the main taxes of local governments are mostly small taxes,and the tax amount is small and chaotic.Before the business tax revenues were all owned by local governments,accounting for about one-third of the local tax revenues.After "replacing business tax with vat,"the local tax revenue sources share proportion of tax is bigger,this affects the enthusiasm of local taxes.The proportion of non-tax income is big,which has lost the regulating effect of tax on economy.These problems will affect the healthy development of the local economy and affect the high-level industrial industrial structure.This paper will try to explore the relationship between tax decentralization and the growth of the second and third industries.In this paper,the influence of vertical decentralization on the growth of secondary and tertiary industries is explored from the perspective of tax revenue between the central and local governments.Considering the tax decentralization is an important part of the fiscal decentralization,but the theory on tax decentralization is less,the paper begins to review the relevant theories of fiscal decentralization and tax principle of separation of powers,and makes a comprehensive review about how the fiscal and taxation policy and tax decentralization affect the industrial structure.Secondly,the theoretical mechanism of taxation and tax decentralization discusses the effect of tax decentralization on industrial structure adjustment.In this part,I first briefly introduce the process of reforming the system of tax decentralization in China.Secondly,describes the following status of China's industries and finds that the industrial structure still has huge room for optimization.Finally,this article gives an empirical analysis of the impact of tax decentralization on the development of the secondary and tertiary industries and on the impact of the optimization and upgrading of industrial structure.This part of the empirical analysis data from China Statistical Yearbook,the time period is 2005-2016,a total of 12 years,and includes 30 provinces of panel data,is a short panel data regression.First,according to the characteristics of the panel data,choose IPS to do the unit root test to ensure that it is not a pseudo-regression,and the corresponding regression can reflect the relationship between the explanatory variables and the explanatory variables.Secondly,after the Hausman test,the results show that using a fixed-effect model for regression,it is concluded that tax decentralization is conducive to the development of the secondary and tertiary industries,and has a large correlation coefficient with the tertiary industry,that is,the degree of tax decentralization.The improvement is conducive to the optimization and improvement of the industrial structure.Third,under the robustness test,after removing the control variables and reducing the individual's two robustness test methods,the results obtained again are the same as above,demonstrating that tax decentralization is indeed conducive to the development of the secondary and tertiary industries,and to the third the role of industrial development is even greater,which is conducive to optimizing and improving the industrial structure.Finally,based on the literature review at the beginning of this article,combing the historical changes of the tax distribution system and theoretical analysis of taxation rights on the basis of the secondary and tertiary industries,I put forward relevant policy recommendations to give play to the promotion of the growth of the tertiary industry by tax decentralization.Effectiveness will also further improve the construction of local taxation systems,improve the construction of China's modern financial system,promote the optimization of industrial structures,and support the protection of China's economic growth.