On Effects Of Tax Revenue On Economic Growth In Inner Mongolia

The studies on the relation between tax revenue growth and economic growth have been popular in the recent years due to the significant influence that the rise in tax revenue exerts on economic growth.Taxation,as an important tool in regulating economy,determines the scale and quality of fiscal revenue and exerts an important effect on the performance of public functions at all levels of government.When promoting economic growth,ensuring stable taxation and reasonable tax burden can make coordinated development and common progress between tax revenue and economy.This article aims to explore the influence of Inner Mongolia tax revenue on its economy as the research subject through error correction model,VAR model,panel data model,and provides some suggestion concerning the coordinated development between Inner Mongolia tax revenue to its economy.The findings of this study are as follows.The macro tax burden of Inner Mongolia has maintained a steady upward trend in recent years,and the tax revenue is flexible.However,the elasticity of tax revenue in each city doesn't show stability,though with flexibility.Inner Mongolia's tax revenue mainly comes from regions with higher tax revenue,such as Hohhot,Ordos,and Baotou where macro tax burdens is relatively higher and taxation and economic development between regions is relatively balanced.The tax growth rate of Inner Mongolia has an impact on the GDP growth rate.The tax growth rate of Inner Mongolia has an impact on the GDP growth rate.When the long-term tax growth rate increases,the GDP growth rate will decline,and the tax increase will reduce the national income.In addition,when the economic growth rate is disturbed and deviates from the equilibrium in the short term,it will be reversed and restored to the equilibrium level in the short term.In terms of composition of Inner Mongolia's tax revenue,turnover tax accounts for a large part.And value-added tax and business tax,consumption tax,and corporate income tax all contribute to Inner Mongolia's economic growth;personal income tax and resource tax have an adverse effect on Inner Mongolia's economy,and the two types of tax revenue should be appropriately dropped;fixed asset investment,total retail sales of consumer goods,and gross amount of salary of urban residents all boost Inner Mongolia's economic growth.It is concluded the living standards of residents should be improved and consumption should be promoted,thereby enhancing economic growth in the future development.