Research On Perfection Of The Local Tax System In China

The current local tax system in our country has been gradually formed since the reform of tax distribution system which was carried out in 1994.Compared with the previous financial system,the tax distribution system is based on the powers in public affairs of the central and local governments,and has re-divided the financial distribution relationship between the central and local governments,playing an important role in the cause of socialist construction.However,with the completion of the "repalcing the business tax with value-added tax",local governments' revenue has been greatly affected,and the contradiction between local financial powers in public affairs and expenditure responsibilities has become prominent.At the same time,the socialism with Chinese characteristics entered into a new era,the main social contradiction has been transformed into "the contradiction between the growing needs of the people for a better life and the unbalanced and inadequate development".China is a vast country with huge differences in regional development,which can not be ignored in the current socialist construction.The continuous development of urbanization and the equalization of public services require further stimulation of the two initiatives of the central and local governments.Perfecting the local tax system plays a vital role in enriching local revenue,and straightening out the relationship between central and local financial distribution.This paper takes perfecting the local tax system as the research content,and successively uses the methods of literature research,data analysis,historical analysis and comparative analysis.Firstly,this paper summarizes the research results of relevant issues at home and abroad by using the literature analysis method,and analyses in detail three classical theories related to the perfection of local tax system:public goods theory,fiscal decentralization theory and local government competition theory.Then,on the basis of inquiring and analyzing authoritative data,it reveals the fact that local governments in China are facing the unmatching of "powers in public affairs" and "financial powers",which is the start point of this research.Next,by combining historical analysis with comparative analysis,this paper points out the great changes of local government fiscal revenue before and after the reform "repalcing the business tax with value-added tax".On the basis of studying the characteristics of local tax system in federalism and singular countries,it summarizes the different modes of local tax system,and finally,on the basis of previous analysis and research,it explores the way to perfect the local tax system of China.