Research On The Impact Of Tax Governance Ability On Common Prosperity

Socialism with Chinese characteristics has entered a new era,and " Common Prosperity " has become a key word for China’s new journey in the new era.As the foundation and important pillar of national governance,tax governance has unique advantages in promoting the process of common prosperity.Therefore,how to scientifically judge the relationship between tax governance capacity and common prosperity and give full play to the greatest advantages of tax governance is of great significance to promote common prosperity.In view of this,this paper focuses on the core research question of " how tax governance ability affects common prosperity." Firstly,it discusses the background and significance of this study,and summarizes the current status and shortcomings of scholars ’ research on tax governance and common prosperity.Secondly,it expounds the connotation of tax governance and common prosperity,clarifies the relationship between tax governance ability and common prosperity through combing the mechanism of action,and puts forward the research hypothesis.Thirdly,by constructing the evaluation index system of tax governance ability and the function formula of common prosperity measurement,the two indexes are measured,and the current situation analysis and fitting observation of the measurement results are carried out to grasp the current trend and evolution characteristics of tax governance ability and common prosperity.Then,through empirical test to explore the direct effect and mediating effect of tax governance capacity on common prosperity,this paper uses the panel data of 31 provinces in China from 2004 to 2020 to construct a dynamic panel model,and then uses the system generalized moment estimation method to perform regression estimation and result analysis on the model.The robustness test uses two methods: replacing the explanatory variable measurement function and replacing the differential generalized moment estimation.Then this paper analyzes the structural heterogeneity from the two dimensions of tax revenue ability and tax law enforcement management ability.Finally,the recursive effect model is used to test the mediating effect of tax governance ability on common prosperity.Finally,the following conclusions are drawn: the impact of tax governance capacity on common prosperity is positive.Improving tax governance capacity can significantly promote the realization of common prosperity,and tax governance capacity affects the realization of common prosperity by affecting the supply of public services to a certain extent.According to the conclusions,this paper puts forward relevant policy suggestions from three aspects :’ make a good cake ’,’ make a big cake ’ and ’ divide a good cake ’,in order to make a greater breakthrough in improving tax governance capacity to promote the process of common prosperity.