Research On The Influence Of The Policy Of Expanding Power And Strengthening County On The Tax Efforts Of County Government

Finance is the foundation and important pillar of national governance.A good relationship between fiscal revenue and expenditure is a necessary guarantee for achieving high-quality economic development and realizing the great rejuvenation of the Chinese nation.Since 2013,China ’s finance has made outstanding achievements,but also faces a severe test.On the one hand,the trend of increasing fiscal deficits,continuous efforts to reduce taxes and fees,and insufficient financial resources has once again emerged,and the contradiction between local finance,especially county-level finance,has become prominent.In this context,as the most important form of fiscal revenue,tax revenue plays an important role in alleviating the contradiction between fiscal revenue and expenditure of county-level governments.As a comprehensive reform covering the economic and political fields,the essence of "expanding power and strengthening county " reform is to improve the administrative efficiency of county-level governments and promote economic development by expanding the economic and social management powers of county-level governments.The reshaping of the power environment and the change of the incentive system of the county-level government will have an important impact on the tax efforts of the county-level government.Therefore,it is of great practical significance to explore the influence mechanism and effect of ’ expanding the power and strengthening the county ’ on the tax efforts of the county-level government.In the part of theoretical analysis,based on the existing research,this paper combs and analyzes the reform content and reform effect of ’expanding power and strengthening county ’,and combines the influencing factors of county-level government tax efforts.Through multiplier theory,tax contract theory and tax competition theory,this paper deeply analyzes the influence mechanism and path of ’ expanding power and strengthening county ’ on county-level government tax efforts.Based on the influence mechanism of " expanding power and strengthening county " on the tax efforts of county-level governments,this paper puts forward three possible hypotheses : the reform of "expanding power and strengthening county " will enhance the tax efforts of county-level governments;the effect of the reform of " expanding power and strengthening county " on the tax efforts of the county government is heterogeneous about economic factors.The reform of "expanding power and strengthening county " has a positive spatial spillover effect on tax efforts.In the part of theoretical analysis,based on the existing research,this paper combs and analyzes the reform content and reform effect of ’ expanding power and strengthening county ’,and combines the influencing factors of county-level government tax efforts.Through multiplier theory,tax contract theory and tax competition theory,this paper deeply analyzes the influence mechanism and path of ’expanding power and strengthening county ’ on county-level government tax efforts.Based on the influence mechanism of " expanding power and strengthening county " on the tax efforts of county-level governments,this paper puts forward three possible hypotheses : the reform of "expanding power and strengthening county " will enhance the tax efforts of county-level governments;the effect of the reform of " expanding power and strengthening county " on the tax efforts of the county government is heterogeneous about economic factors.The reform of "expanding power and strengthening county " has a positive spatial spillover effect on tax efforts.In the empirical analysis part,we select the county-level panel data of nine provinces in China from 2000 to 2007,including Heilongjiang,Hebei,Henan,Hubei,Anhui,Zhejiang,Guangdong,Liaoning and Hunan,and use the ’ tax handle method ’ to construct the main explanatory variable of local government tax efforts,and use the reform implementation of ’ expanding power and strengthening county ’ as a node to construct a double difference and spatial double difference model to explore the relationship between the policy of ’ expanding power and strengthening county ’ and local government tax efforts.The empirical results show that ’ expanding power and strengthening county ’ plays a positive role in promoting the tax efforts of reform counties.The tax efforts of county governments are negatively correlated with the level of county economic development and transfer payments,and positively correlated with the county industrial structure and the output value of industrial enterprises above county scale.This conclusion is still valid under multiple robustness tests.From the perspective of heterogeneity analysis,the tax efforts of county-level governments in the eastern region decreased after the reform of " expanding the power and strengthening the county," while the tax efforts of county-level governments in the central and northeastern regions decreased significantly after the reform of " expanding the power and strengthening the county." In order to further study the spatial effect of ’ expanding power and strengthening county ’ on the tax efforts of county-level governments,the double difference model and the spatial model are nested,and the spatial double difference model is constructed to study the spatial effect of ’ expanding power and strengthening county ’ on the tax efforts of county-level governments.The results show that the reform not only has a positive incentive effect on the tax efforts of the reform experimental group,but also has an impact on the reform control group,which improves the tax efforts of the neighboring county governments and has a positive spatial spillover effect.This conclusion is still robust under multiple robustness tests.Based on the above empirical results,the following suggestions are put forward : First,deepen the reform content of ’ expanding power and strengthening county ’.Continue to strengthen the management authority of county-level governments to maintain the role of reform in promoting county-level economic development,and enhance county-level government tax efforts to ease county-level government financial pressure.Second,give local governments more financial autonomy.While giving local governments more fiscal revenue control,reducing local governments ’ dependence on transfer payments may be a policy choice to enhance local governments ’ tax efforts.Thirdly,the policy of ’expanding power and strengthening county ’ should have more regional characteristics and should not adopt a one-size-fits-all policy.County-level governments need to take into account local economic development when raising tax efforts.Fourth,attach importance to scientific taxation and taxation according to law.Although " expanding power and strengthening county " can effectively improve the tax efforts of local governments,the improvement of this tax effort should be within the scope of scientific taxation and taxation according to law.In other words,although decentralization reform has increased local government tax incentives,it should be actively taxed within the framework of the tax law,rather than overtaxed.