Tax Competition Among Local Governments,Fiscal Pressure And Non-tax Income In China

Non-tax income is an important part of local revenue,and it is of great significance to maintain reasonable local fiscal revenue structure for local economic development and local government functions.However,since the reform of tax-sharing system in China,the proportion of non-tax income has been increasing,and the phenomenon of non-tax income crowding out tax revenue is not only detrimental to the optimization of local fiscal revenue structure,but also restraining the consumption of residents and aggravating the burden of enterprises,which has caused a serious economic and social impact.For the growth of non-tax revenue,this paper analyses the link between tax competition,fiscal pressure and non-tax revenue growth.On the one hand,it can enrich the research on tax competition and non-tax income,and on the other hand,it is of great practical significance to solve the excessive growth of non-tax income and to remedy the disease.Based on the combination of normative analysis and empirical analysis,qualitative analysis and quantitative analysis,this paper innovatively combines the tax competition and financial pressure of local governments to explore the impact to local government's non-tax revenue.In this paper,the implementation of the tax sharing system,the local government can not meet the expenditure,and it is difficult to meet the financial demand of providing public services.Compared with the tax revenue,the constraint on non-tax income is relatively small,and local governments are more likely to expand the financing channels from non-tax income.In addition,under the performance assessment mechanism with GDP as the core,local governments often use fiscal subsidies and preferential tax rates to attract investment and develop regional economy,which in turn reduces the tax revenue of local governments and increases their dependence on non-tax income.The structure of this article is arranged like this:The first chapter introduces the background of the topic,defines the research object,and clarifies the research methods,innovation points and shortcomings of this paper.In the second chapter,the author sorts out the related research on tax competition,financial pressure and non-tax income from domestic and foreign scholars,and then puts forward the research idea of this paper,namely the effect of tax competition among local governments and fiscal pressure on local non-tax revenue.The third chapter analyzes the current situation and problems of tax competition,financial pressure and non-tax revenue from the point of fact.The fourth chapter selects the key data about China's 30 provinces except Tibet,Hong Kong,Macau and Taiwan,from 2002 to 2016 uses static panel data and dynamic panel data to construct regression model,empirically estimates the relationship between tax competition,fiscal pressure and non-tax income.The empirical study finds that,the higher the tax competition among local governments,the more the non-tax revenue;The greater the fiscal pressure,the more the non-tax revenue;The expansion of non-tax income scale has the inertia effect,which will be affected by the significant positive influence of the non-tax income scale in the previous phase;Fiscal pressure will reduce the positive impact of tax competition on non-tax revenue.Further,the article introduced regional virtual variable to explore China's eastern,central and western region of intergovernmental tax competition on non-tax income,the model results also supports tax competition can increase non-tax revenue.Specifically,the tax competition among local governments has the greatest influence in the eastern region,followed in central,the minimal influence in the western region on the non-tax income.In the fifth chapter,on the basis of the factual analysis and empirical results,the following policy suggestions are proposed in this paper:Firstly,deepen reform of the fiscal and taxation systems,reasonably divide the financial and administrative rights of the central and local governments,and improve the local taxation system.Secondly,reform transfer payment system to promote balanced development of the region.Thirdly,speed up the construction of the management system for the collection and payment of non-tax income and regulate non-tax revenue.Finally,improve the implementation of the new budget law as soon as possible and promote the transparency of the budget.