Research On The Impact Of Tax Plan On Regional Tax Burden's Disparity In China

After the reform of the tax sharing system,a unified tax system has been established in China.However,there is a very significant difference in tax burden between different regions.This paper tries to study the reasons for the difference of tax burden between China's regions since the reform of the tax system,based on the special perspective of tax plan.It analyzes the behavior of the tax authorities in our country under the rigid assessment pressure of higher authorities,to adjust the local tax revenue to ensure the successful completion of the annual tax plan.This paper studies the impact of this special institutional factor on China's regional tax burden,and puts forward a new explanation for the difference of tax burden between regions in China.Based on the statistical analysis of regional tax burden,this paper finds that there are great differences in the level of tax burden between regions,and the tax burden of some provinces is not consistent with their economic development level.The relevance between tax burden and GDP is also different in different provinces.In order to study the reasons behind this phenomenon,this paper empirically analyses the impact of tax plan on tax burden in China from two aspects.On the macroscopic empirical aspect,based on the 1998-2015 annual provincial panel data,this paper employs the dynamic panel model,using the GMM estimation method,and studies the effect of tax plan on tax burden in various regions in China.In the micro empirical part,this paper employs the 1998-2007 annual industrial enterprise database and the fixed effect model to analyze the impact of tax plan on the tax burden of enterprises in various regions.In addition,this paper also makes a mechanism test based on the aspect of tax effort index and corporate tax avoidance.The empirical results show that tax plan plays an important role on regional tax burden's disparity.It has positive effect on tax burden,and this effect is different between different regions and different tax categories.In the middle and western regions,the tax burden is more affected by the tax plan.This is due to the rich tax fund in the eastern regions,and the tax authorities in developed provinces have more power to regulate the tax revenue to ensure the successful completion of the annual tax plan.But for the middle and western regions,because of the weak economic foundation,and the tax administration space are relatively limited,in order to achieve the tax plan to meet the requirements of the assessment target,it is necessary to make more efforts.This finally leads to higher tax burden in the middle and western regions.Due to the different affiliations of different tax categories,it is also found that the effect of VAT tax plan is not obviously different between different regions.The effect of Business tax plan and Corporate income tax plan is obviously different between different regions.The mechanism tests in the paper support that the tax authorities in the middle and western regions have higher tax effort under the tax plan system.Because it is more difficult for the tax authorities in the middle and western regions to achieve the tax plan and they must work harder to levy tax.