On Outline Of Taxing Power

Power is a most basic concept in social sciences.Tax category emerged when State came into being. The concept of taxing power is put forward by synthesizing the tax category and the power concept.Taxing power should be a basic category in tax discipline and should possess a very important position in tax system. People (society) can begin to develop the tax system, tax policy, an establish tax agency only after having solved the issue of taxing power. So understand taxing power is necessary to understand tax system, tax policy and taxing power. Then tax system, tax policy determine people's taxes-economic behavior, which will result to tax effects. From the dynamic point of view, taxing power is the power factor of tax systems, is the dynamics for tax sciences, and we can not understand the tax history if we lack the theoretical basis of taxing power. Therefore, taxing power is essential link to understand tax phenomenon. If we ignore the taxing power, it is then difficult for us to understand the phenomenon of tax generation, the reasons for the development and changes of the taxation field.But the taxing power concept is basically neglected in traditional tax research, and has not yet formed a systematic theory of taxing power. The author believes that the establishment of taxing power theory will be necessary and helpful to promot the development of tax theory. Traditional tax theory is very difficult to explain tax phenomenon because that the key link of taxing power is lacked or too vague in the scholars's framework of understanding tax.Taxing power is ignored to hidden behind thinking. In fact, there exists power factor behind each tax phenomenon--in the reform of tax system and tax policy and tax administration, tax evasion, tax resistance,etc. Traditional tax theory lacks clear theory on such basic issues as how the tax system come from,how the tax system is established. The author think the reason lies in lack of in-depth study of taxing power.To enhance the understanding of development, implementation and reform of tax system,we need to study the taxing power behind the tax system.Tax regime category which was put forward ten years ago is the category closest to taxing power. But the category exists a lot of problem such as vagueness, contradictions, confusing, and so on (see the analysis of literature review), which has impeded people's understanding of tax regime in-depth.Therefore, we need conduct a special research on taxing power. Special studying of taxing power is a basic work necessary to accomplish task of explaining and understanding tax phenomenon. It is also a necessay work to clarify and change the fuzziness and confusing state in tax regime research, to promote the tax regime research.To get systematic recognization of taxing power, we need study such basic issues as:what the taxing power is, with what characteristics is has,how the taxing power be generated and established, what effects will happen from taxing power, whether the optimal taxing power exists, and how to solve taxing power problems if them are faced with,and so on.The main contents of this dissertation can be divided into three parts. The first part is the discussion of the mechanisms of taxing power, and the second section discusses the decision, effects and optimization of taxing power. The third part is the use of previous theoretical result to study Chinese taxing powers, and explore the optimal way to solve problems of Chinese taxing powers.Chapter 1 is introduction. This chapter includes six aspects:the presentation of topics, the literature review, the theoretical and practical significance of taxing power research, research methods, the train of thinking and logic structure, innovation and inadequacy.Chapter 2 is a set of analysis of mechanisms of taxing power.2.1 is a general analysis of the power to study the theory of the basic issues of power, including the nature of power, features, elements, classification, form, scope, relations between power and right. Thus a theoretical foundation is laid for the study of taxing power. 2.2 is the analysis of mechanism of taxing power,the taxing power mechanism is the power of the power of the elements, links and interconnected aspects, constraints and role of the principle. And from two aspects of the static analysis and dynamic analysis the taxing power mechanism is analyzed. Taxing power mechanism includes tax-levying mechanism and transmission mechanism with tax using mechanism. Chapter 3 discusses the taxing power's decision. Discussion of the taxing power's decision is a expansion of taxing power mechanisms analysis,which set up a solid basis for understanding taxing power in-depth. Prior to this, in section 3.1 a general discussion of the first generation of taxing power, and holds taxing power have political, economic and social conditions of generation,thus enrich the traditional analysis of the origin of tax.Then discusses how each country or government authority to establish taxes, after the establishment of the taxing power how to run.This chapter, followed by section 3.2,3.3,3.4,study the taxing power's decision from political, economic, social factors's impact. Political, economic and social factors all contains right, power, institutional, organizational and behavioral contents, which build a systematic frame contains all these various aspects of impacts on determination of taxing power. Section 3.5 puts them together to establish a comprehensive decision model of taxing power, which suggests that political, economic and social factors influence taxing power, the structure of tax power, tax status and exercise of power. To establish a comprehensive decision model of taxing power is a first and great step and it is a necessary part of theory construction to achieve a taxing power theory.Chapter 4 is discussion of effects of taxing power. By considering the size and using of tax, this chapter analyzes political,economic, and.social impact of taxing power. Section 4.1 discusses the political effect of taxing power. Taxing power can affects political rights, political power, political system, political organization and political behavior. The difference of political effects of autocratic and democratic taxing authority is made in a comparative method. Finally,4.1.5 is devoted to the discussion of impact on political stability of taxing power. Section 4.2 discusses the economic effects including the impacts of economic rights, economic systems, economic organizations and economic operation of taxing power. The impact on economic performance from taxing power is divided into micro-economic effects and macroeconomic effects. At the macroeconomic effects, the tax impact on economic growth authority mainly is discussed, AK growth model based on taxing power is raised. In the final part of section 4.2, the limitation of tax effect view in Western economics is analyzed in-depth, points out the existing contradictions and the utopian nature should be solved by recognize both positive and negative effects of the taxing power, and not blindly believe that it will bring negative effects of tax, 'that zero tax equals the optimal state. Section 4.3 studies the social effects of taxing power. This section discusses the impacts of social rights, social system, social organization, social behavior and social development from taxing power.And in 4.3.2, the impact on social system, social informal (cultural) system is discussed in detail. Discussion in 4.3.5 is impact on social development of taxing power, includes the impact on social relations,social harmony of taxing power, though brief, but very thorough discussion is made, and then discuss impacts on the population, including population size, population quality, population structure and population flows from taxing power. Impact of demographic situation and social relations from taxing powers belong to the overall impact on society, it sums up to effect on social development from taxing power.Chapter 5 is the analysis of optimal taxing power which is criteria of taxing power optimization. In section 5.1, a general analysis on optimal taxing power is defined,and the standards of the optimal taxing power is proposed. After the macro-political premise of equilibrium between taxing powers and taxation rights, equilibrium of optimal taxing power supply and demand (static point of view), the optimal operating state of taxing power--the optimal tradeoff of justice and efficiency, optimal behavioral equilibrium (game equilibrium) and mechanism design of various aspects of optimal taxing powers are discussed in turn.Section 5.2 discusses taxing regime equilibrium which is the political prerequisite of optimal taxing power, proposes that taxing regime equilibrium means equilibrium between state taxing powers and citizens'taxation rights. From the angle of human nature, bounded rationality, etc., the necessity of restricting taxing power with system implementation is discussed. In the realization of the institutional arrangement of taxing regime equilibrium, equilibrium between all kinds of citizen taxation rights and taxing legislative power is discussed. To prevent alienation of taxing legislative power, a thought of zero-base (neutral) election is especially proposed, which should be thought of vital importance.Section 5.3 analyzes the optimal taxing power from the angle of equilibrium between supply and demand based on taxing regime equilibrium. In static analysis, the optimal taxing power must meet a balance between taxing power supply and demand. In this section, we firstly discuss concepts related with balance of taxing power supply and demand, among which main are taxing power supplies, taxing power demand and balance between supply and demand of taxing power. Then we study the taxing power optimization and disequilibrium taxing power, the actual equilibrium and ideal equilibrium of taxing power supply and demand is put forward and discussed,which will can further optimize taxing power.5.4 section discusses the optimal tradeoff between justice and efficiency of state taxing power. This section suggest there may exist contradiction between operation efficiency and operation justice of taxing power, therefore it is necessary to make a optimal tradeoff. The solution should be tax basis, as highly effective as possible in the exercise of. taxing power without violation of operation justice. Thus we should apply to the principle of taking care of the weaks and keeping in reasonable caution, which means not toviolate justice and fair tax-using and to implement taxlevying power, judicial power and tax using power as highly effective as possible.5.5 section analyzes the optimal taxing power from behavioral equilibrium. This section mainly adopts game analysis method, and combines it with utility analysis to establish an optimal equilibrium strategies of taxing power system, which is actually a design of optimal taxing power contract.Chapter 6 is a research of optimization of Chinese taxing power. Using the theoretical framework established in previous chapters,this chapter devotes to study Chinese taxing power to explore the source of taxing power problems, to search for ways and solutions to optimize Chinese taxing power. This chapter is divided into 5 sections.Section 6.1 investigates the development history of Chinese taxing power from the generation, through China's feudal society, and modern China,until post-liberation,thus makes a long-range analysis, especially summarize the basic pattern of feudal taxing power. The discussion mainly focuses on the development of Chinese taxing power after liberation, especially after the reform and opening.Section 6.2 is analysis of the status quo of Chinese taxing power. Status quo of China taxing power is described systematically, the basic problems of the existing China taxing power confirmed, and the reasons of Chinese taxing power problems and effect of Chinese taxing power analyzed.Section 6.3,the international experience of optimization of taxing power. It analyze and summarizes advanced experiences in construction of taxing power from other countries and regions. From aspects of tax legislative, tax law enforcement powers, tax jurisdiction,and tax-using power, outline of typical international experiences has been described in a roughly simple style.Section 6.4 discuss method and treatments to solve the problem based on optimization theory.The set of countermeasures of taxing power optimization is a comprehensive systematic policy suggestions.Basic principles of optimization of taxing power are put forward in this section, and proposals to optimize Chinses tax legislative power and tax law enforcement power, tax judicial power and tax-using power are respectively discussed.Finally, Section 6.5 discusses the dynamics and prospects of the optimization of Chinese taxing power among the optimal power, briefly discusses realistic basis,basic approaches, and possible dynamics.Possible innovation may be classified to innovation of research methods and that of theoretical development:1.Application of interdisciplinary research method into taxing powerTaxing powers have many features,so it is necessary to synthesize these multi-disciplinary intellectual knowledge of the taxing power into an entirety. Comprehensive study can be used to not only avoid improper simplification of understanding taxing power due to local analysis, but also to research relationship of taxing power and tax environment at the appropriate level. We need to build taxing power theory based on comprehensive multiple disciplines.2.Concept of taxing power game chain is put forward to solve taxing power game equilibriumWhile using the game theory method to research taxing power optimization, combining concept of initiative game and related game, the game chain concept is put forward and is used to analyze the optimization of taxing power. Using game chain analysis,we can advance the local game equilibrium of traditional game analysis into general game equilibrium among three and above people.Possible innovation of theory and viewpoints may be listed as follows:Literature review of tax regime study so far has displayed blind spots of the tax theoretical study. This paper combins politics, economics, sociology disciplines into taxing power study. The taxing power concept is abstracted from tax system, tax management phenomenon etc., and further proposes taxing power mechanism category from mechanism angles, to construct a theoretical framework of taxing power mechanism.1. Establishing a theoretical framework of taxing power mechanism(1) In static analysis, the understanding of tax nature is promoted. After absorption the reasonable components of tax nature theory exists in academic circle from coersion school and transaction school of tax nature,the author points that the coersion bases on the political force as backing is necessary to take resources from people who own private property, while nature of transaction is more necessary in order to satisfy public need. Thus tax in essence is taking resources from private people and organization to meet public need. The nature of taxing power is a kind of asymmetric social relations backed on compulsory ability. In the dynamic analysis, tax power mechanism which consist of tax-levying mechanism and transmission mechanism is proposed.The process of taxing power mechanism is divided into three stages of decision, implementation and effect formation. The process from the decision to effect formation makes a complete cycle which can be called as taxing power cycle. Round and round of taxing power cycle constitutes a'taxing power turnover.(2) From the dynamic perspective, taxing power mechanism consists of two sub-systems:tax-levying mechanism and tax-using mechanism and transmission mechanism.Taxing power. transmission.mechanism includes information mechanism, psychological behavior mechanism as well as the variable mechanism.Here a newly expanded Lewin behavior model is put forward to explain the psychological behavior mechanism. The social role process of taxing power mechanism can be described as thus:"environment variable E→taxing power environment variable Et→psychological variables of taxing power subjects and taxing power objects E1-2/P→taxing power subject and object of taxing power behavioral variables Bl-2→game G (B1, B2)→political, economic, and social effects variables".So the whole process can be divided as three stages—decision stage, implementation stage and effects-forming stage.Hence from influence social environment to taxing power,return again ot influence social environment, to form a complete circle, which can be called as taxing power cycle.Round and round of taxing power cycle constitute taxing power turnover.Taxing power turnover is a theory category of significance, analysis of state taxing power flow can be used to assess the stability of the existing taxing power.2.The theoretical framework of determination of taxing power is established and is of significance(1) A new structure-behavior-performance paradigm is put forward to discuss taxing power determinationThe "right-power-system- organization-conduct-performance" paradigm is a kind of new'structure-behavior-performance'paradigm,which the structure here means"right-power-system-organization"system.Tracking from performance to front right,the performances i.e. effects, is determined in the process of behaviors implementation; behaviors is implemented by organizations or individuals, organizations is a collection of individuals, but also operating units; organizations are established and operated according to systems (including culture); systems are established by powers, and the source of powers are rights. Therefore, the performance of the state taxing power is finally decided by rights. Right, power, system, organization and behavior all have political, economic and social content, which can make a normative discourse structure.(2) The taxing decision of taxing power include three aspects of political decision, economic decision and social decision. In political decision, the dissertation holds that different political rights structure, political power status, political system and political organization will bring about differentl influences on establishment of taxing power, the effect of political behaviors is a comprehensive result from those several aspects mentioned above.Applying public choice theory, the median voter model of taxing power to decide is established. The economic decision of taxing power is actually influence of economic factors(including economic rights pattern, economic powers,economic systems, economic organizations and economic activities,economic development)on the establishment and operation of taxing power. Social decision of taxing power mainly studies the influence on taxing power from social rights,social power, social systems and social organizations,which will influence the establishment and operation of taxing power, and should not be ignored. After discussion of effects of various aspects, this chapter finally creates a synthetical decision model of taxing power from the angle of system.3. The expansion of tax effect theorytaxing power effect has three aspects of political, economic and social effects thus expanding the traditional tax effect theory.(1) Innovative alysis of political effects of taxing powerIn this dissertation, tax power political effect is proposed to means the effect that taxing power can affect political rights, political power, political system, political organizations, political behavior and political stability. The political stability influence from taxing power is particularlly discussed.Applying Huntington's political stability theory in taxing power, and find that there exists some uncertainty in analysis and points for his political stability theory.(2)Innovative analysis of economic effects①This dissertation presents a model of endogenous economic growth,and advances to build endogenous economic growth of AK model based on taxing power, promotes economic growth model based on tax to that basded on taxing power, study the influence on economic growth factors from taxing power, and the influence mechanism.It compares the different influence from democratic taxing power and autocratic taxing power on economic growth, the author believes economic growth under autocratic taxing power is more volatile, and that under democratic taxing power power is more relatively stable.②Second, the limitations of views of negative tax effect in new classic taxation theory is discussed, and point out that this view exists a rationality contradiction, and should not be accepted for self-consistent logic economic theory.The first theorem of welfare economics holds perfectly competitive equilibrium is the best pareto optimal equilibrium,which assumes zero-tax optimal economic state. This means a zero-tax utopia system, don't consider the possible positive value of tax for healthy operation of entire society, which is actually an anarchic political philosophy. We should implement actualist hypothesis and analyze the tax effects combining with tax using; puts forward rational view human will establish a positive effect of taxing power according to beforehand rationality; The taxing power bring about negative effects due to bounded rationality proved as afterward irationality, due to self-interest motive which lead taxing power to deviation and alienation, and difficult to organize effective collective action to avert tax deviation and alienation because of Olsenian collective action dilemma which can keep society in a rigid. Therefore tax effect is generally of duality. This would solve the rationality contradiction existing in traditional opinion of tax effect, and let taxation theory be more self-consistent logic.4.Construction of theoretic analysis system of optimal taxing power(1)The core of optimizing taxing powers-optimal taxing power is systematically studied. And optimal taxing power standards are raised as: equilibrium of tax regime, equilibrium of taxing power supply and demand, optimal running of taxing power, and optimal taxing power effect standard etc. Equilibrium of tax regime balance is the political basis of optimal taxing power. Perspective of supply and demand equilibrium of the taxing power, made the reality and the ideal balance between supply and demand concept of the taxing power; make optimal trade-off of taxing power fairness and exercise efficiency; with game theory and utility analysis combined,the optimal of taxing power is established based on game equilibrium system.(2)The tax regime equilibrium is a political foundation and prerequisite for optimal taxing power. The tax regime equilibrium requires with justice; maximizing taxation rights, including participating proportion in taxation legislation,and optimization rights of supervising the running of taxing power, etc.System realization of tax regime equilibrium is proposed to held the zero-base election in new period to eliminate the adverse effect from given authority to the taxing power.(3)Under the premise of tax regime equilibrium analysis, equilibrium of taxing power supply and demand is required for taxing power itself to the optimal taxing power, the tax burden decided while taxing power supply and demand meet to reach equilibrium is the optimal macro tax burden; the optimal taxing power need to minimize tax power gap between supply and demand. Concepts of real and ideal taxing power supply and demand equilibrium is proposed; optimization of taxing power should be realized on the basis of ideal pattern of income distribution, namely taxing power should promote the formation of optimal income distribution.(4)With game theory and utility analysis combined,optimal taxing powers can be established in theory on the basis of game equilibrium. With game between taxcollectors and taxpayers, and game between taxpayers and taxusers and game between taxuser and taxcollectors combined, a new concept of taxing power game chain is proposed, which is proved to be necessary to establish optimal taxing power. With equilibrium of game chain and utility analysis combined, taking incentive compatible constraint, participation constraint and budget balance constraint into consideration, using common utility function and public product production function, the existence of solutions for the optimal tax rate is obtained, which shows that the optimal wage and optimal employment structure necessary for the optimal running of taxing power exist. Thus we find we can find optimal tax power game chain equilibrium through utility analysis.The basic conclusion of the optimal taxing power game chain equilibrium analysis is that--given taxpayers rights to establish taxing power, they will establish a budget-balanced, executable optimal tax power system, within which taxusers and taxcollectors can obtain necessary sufficient incentive. The optimal taxing power is built on the basis of all relatively independent games equilibrium.So basic ways to solve the problems of traditional tax game analysis is proposed,and achieve the optimal tax burden, the optimal wages of taxcollectors'and taxusers'and best employment structure through combination of game analysis and utility analysis, which is proved to be able to establish an executable, budget balancable operating mechanism of optimal taxing power.Mechanism of optimal taxing power should be designed on the necessary basis of political system and economic rights.5.Possible Innovation in Positive and Countermeasure ResearchThis dissertation has carried a comprehensive systematic analysis to Chinese taxing power. It has made a panoram-like description on Chinese taxing power's historical development and present situation from its four links, determined the problems existing in Chinese taxing power according to optimal taxing power theory, analyzed the reasons and the influence of these problems,and proposed a set of optimizational countermeasures. In the countermeasure aspect, this dissertation emphasizes to optimize taxing power from the angle of optimizing "political rights-taxation right". Because the taxing power is a huge system including tax legislation, tax law enforcement, tax judicature and tax-using power, therefore we should solve these taxing power problems through a comprehensive consideration of various aspects and links and causing various them to coordinate mutually.Overally speaking, the main contribution of this article possibly lies in that it highlights taxing power factor which has been hiddened behind taxation system and tax administration for a long time, and makes a systematic elaboration of relation between taxing power and political, economical and social condition, thus greatly expands the vision of tax research field. The author hopes that concerning thoughts developed in this article can bring to researcher's attention, and can expand the scope of tax research to obtain a more scientific understanding.