A Research On The Effects Of Effective Tax Burden And Financaial Expenditure On Economic Growth

At present,the Chinese economy has transformed from high-speed development to high-quality development.Howerver,there are still many problems,and the contradiction accumulated for a long time during the Chinese economy and risk have appeared further.Facing the overall background of "selective tax cuts",deepen the reform of the fiscal and taxation systems and America tax reform,how to optimize China tax bearing?How to realize the Chinese economy getting better in a stable status?Before answering these questions,we should have a clear and objective understand to the Chinese current macroeconomic situation and tax bearing,ravelling out the influence path of tax bearing to economic growth.In this paper,take the effective tax rate(tax burden of capital,consumption tax and labour taxes)and structure of fiscal expenditure(economic construction expenditure,social security expenditure and expenditure in science,education,culture,public health)as the indicator of fiscal policy.By the data of the 31 provinces of our country from 1999 to 2015,the panel regression is conducted,the influencing mechanism of fiscal policy on our country macro economy is anaylzed.The influence of tax burden of capital on economic growth depends on the size of"net earning effect" and "public expenditure effect" in different economic entity.By causing "public expenditure effect"and "the effect of compelling deposit",consumption tax can promote the economic growth.The influence of labour taxes on economic growth has double effect--"public expenditure effect"and"income effect",the final result depends on the size of the two sides.Whereafter,the revenue and fiscal expenditure are analyzed statistically in this paper.It was found that the influence of tax burden of capital,consumption tax and social security expenditure of our country on the economic growth shows a nonlinear second order relationship,which was verified following.In the empirical analysis part,firstly the the economic growth effect of effective tax rate is analyzed.It was fouond that the tax burden of capital has inhibiting effect on economic growth,the consumption tax is benificial to economic growth,in addition,the labour taxes can promote the economic growth,however,the effect is not obvious.On this basis,fiscal expenditure variable is added,the double effect of effective tax rate and fiscal expenditure on economic growth is analyzed.It was concluded that the influence of tax burden of capital,consumption tax and labour taxes on economic growth has no change.However,the economic construction expenditure and expenditure in science,education,culture,public health can promote the economic growth,while the social security expenditure goes against the economic growth.At last,we analyzed the regional difference of effective tax rate and fiscal expenditure further,due to the malconformation of economic development and fiscal policy in the three regions of east,middle and west of our country.It was shown by the test result:there is obvious region discrepancy for the influence of tax burden of capital,consumption tax,economic construction expenditure and xpenditure in science,education,culture,public health on economic growth.In addition,there is obvious region discrepancy for the degree of economic openness and infrastructure level on economic growth.To analyze the orientation of China tax reform more objectively and clearly,we ananylzed and compared the tax reform content of China in rencent years and tax reform content of America,and we also analyzed the influence of tax reform of America on China.In rencent years,the tax reform of China has paied more attention on the structure of tax system adjustment,both with increasing and reducing.While the tax reform declared by America paied more attention on the total adjustment,which implemented the wide tax relief policy.Although the influence of American tax reform on China has not appeared yet at present,seeing from the long-term,the American tex reform may weaken the international competive of Chinese company,enchancing the pressure of Chinese captial flow abroad.Under this background,Combined with conclusion of empirical analysis,how to carry out "the structural tax reduction" further,and counteract the influence of American tex reform on China economy,we put forward some suggestions:1.reduce tax based on capital receipt and labour income,expend the tex based onconsumer spending.2.Increase the input of economic construction expenditure and expenditure in science,education,culture,public health.3 Consider the region discrepancy for the structural tax reduction,increasing the taxation and economic construction expenditure in middle area,reducing the capital levy in east area.