Coordinated Regional Economic Development Tax Regulation

In all countries, neither developed capitalist countries and developing countries, the development gap among regional economy exists. How to adjust the gap and coordinate the regional economy is a topic gazed intently by all countries. In reality, the development of regional economy in China is not equivalent. In the new century and the process of establishing overall wealthy society, to coordinate development of regional economy is not only an important economic issue but also an important political and social issue. It is related to not only the permanent development of regional economy but also the continuous, rapid and stable development of the national economy. Currently, we are setting up and consummating socialist market economy system gradually. The market mechanism's fundamental function of resources allocation is elaborating step by step. But the market is not omnipotent, distribution equity, stable economy, non—valuable goods, public goods, externality, natural monopolization, incomplete competition, information asymmetry,etc,lead to market failure. So, governmet participation is needed. The analysis both theoretically and realistically demonstrate that equivalent regional development is impossible in the spontaneous function of market mechanism. Thus, government's interference is necessary. Tax policy is an important lever in regulating economic function. It also brings harmonious regional development into full play. In reality, unbalanced regional tax burden, unreasonable elements in current tax institution influence the harmonious regional development and widen the gap between the developed areas and developing areas. On account of this, it is urgent to analyze the mechanism of tax policy promoting harmonious regional development and examine the factors influencing harmonious regional development in current tax institution.Many scholars have researched regional economy development and tax policy. But there are some defaults. Firstly, there are many researches about regional economic development and tax policy respectively, but they are separate. Some researches are...