Difference Of China's Regional Tax Burden And Reasons For Its Imbalance

The regional tax burden is the epitome of the nation's tax burden.It can reflect the impact of the tax policies on the regional economy.The adjustment of taxation policies will affect the regional tax burden ultimately,which will have an impact on the speed and the quality of regional economic development.The level of regional tax burden should be adapted to the level of regional economic development.The regional tax burden difference should be coordinated with the regional economic development difference.Otherwise,there will be an imbalance in tax burden,and these imbalances exist in our country.The tax burden imbalance will violate the principle of fairness and efficiency,affect the balanced flow of capital and other production factors,and lead to improper tax competition.All of these effects will increase the risk of tax losses.Tax burden imbalanced will eventually exacerbate the imbalance of regional economic development.Therefore,it is very necessary to study the imbalance of China's regional tax burden.This paper studies on the causes of regional tax burden difference and its imbalance with the method of normative and empirical analysis.The first part is introduction.This part focuses on background,literature review,concept definition,research methods,paper framework as well as innovations and insufficient.The second part mainly determines the principles of tax burden and the criteria for judging whether the regional tax burden is reasonable or not.It also analyzes and evaluates the tax burden and its difference of interregional and intra-regional.The third part analyzes the influencing factors of tax burden from three scopes-the whole country,interregional and intra-regional,and constructs dynamic panel model.The empirical analysis is made by differential GMM,system GMM and LSDVC,and the results are analyzed.The fourth part,based on the empirical test results,makes an analysis on the influencing factors of the interregional tax burden,and finds out the reasons for its imbalance.The fifth part puts forward suggestions for balancing the regional tax burden from the following aspects:improving the tax planning,reforming the tax structure,optimizing the horizontal distribution mechanism of tax etc.The main conclusions are as follows:there is imbalance between tax burden and economic development both in interregional and intra-regional.In different scopes,the factors that affect the tax burden are different.The tax burden of the western region is too high.The main reasons are that the structure of the tax system is unreasonable,the proportion of the circulation tax is too large.And the proportion of financial expenditure in some provinces is high.The tax burden of the central region is too low.The main reasons ares that the economic development level of many provinces is too low.Meanwhile,the industrial structure is unreasonable,the proportion of primary industry is too large,the proportion of the third industry is too low and there is a serious tax outflow.The tax burden of the eastern region is low relatively.The main reasons are that the proportion of the primary industry is high and the proportion of the third industry is low.There is some tax outflow too.And some provinces have high proportion of export.The export tax preferential policies can be enjoyed by export enterprises,which may reduce the tax burden.The tax burden of municipalities has no imbalance with its economic development.But the tax burden is far higher than that of other regions.One of the reasons is that the proportion of the primary industry is very low,and the proportion of the third industry is very high.Moreover,there is the effect of the Headquarters Economy which leads to a large amount of tax inflow.The previous tax burden has an impact on the current tax burden both in interregional and intra-regional,which will aggravate the difference and imbalance of the tax burden of interregional.The innovations of this paper are as follows:Firstly,this paper makes a special analysis of interregional and intra-regional tax burden at the same time,so as to make a more comprehensive analysis.There are few studies on the intra-regional tax burden,which is only mentioned in the analysis of the interregional tax burden.Secondly,it is an analysis among three scopes,including the whole country,interregional and intra-regional in the empirical test.In this way,we can find out the different influencing factors of tax burden in different scopes,so as to find out the causes of the tax burden imbalance from a deeper level.However,there is no similar comparative study in the existing literature.Thirdly,this paper carries out an empirical analysis using the data from 1994 to 2015.The one-order lags of the tax burden is used as one of the independent variables,and the dynamic panel model is constructed.Three methods of differential GMM,system GMM and LSDVC are used respectively.The existing literature of China has not used this empirical method to study this problem yet.