| The local tax system is an important component of our financial system.A good local tax system can benefit the market efficiency,promote the development of the market economy,meet the needs of the public service expenditure of the local government,play the role of regulating the income distribution,establish a fair and just harmonious society,and increase the increasing of the people.It provides system guarantee for the contradiction between long beautiful life needs and unbalanced development.So 19th CPC National Congress proposed that "we should accelerate the establishment of a modern fiscal system and establish a central and local fiscal relationship with clear rights and responsibilities,financial coordination,and regional balance".The local tax system established in the reform of the tax system in 1994 has played an important role in clarifying the financial and tax relations between the central and the local government,establishing a standardized and unified local financial system,and has also played a positive role in the economic development and social progress of our country.At the same time,with the development of the market economy and the acceleration of the process of globalization,the local tax system,which is adapted to the requirements of the transformation and construction of public service type government,has not really been established.On the contrary,it leads to various problems in the social and economic development,for example,the imbalance of the expenditure and tax,the vertical financial imbalance between the central and the local government,the lateral financial imbalance between the different local governments,the imbalance of efficiency and fairness and external imbalances,this shows that,if the local tax system arsing from the tax-sharing system has promoted the economic development and social progress of our country,it is at the expense of the imbalance between our country and the outside.In 2016,the transformation of business tax into value-added tax made the local tax system faced with the lack of main taxes.It is imperative to improve the local tax system and establish a reasonable system of decentralization,efficiency,equitable,stable,and reliable local tax system to improve the imbalance of local tax revenue.This paper evaluates the rationality and defects of the current local tax system structure,analyzes the stability of local finance,tries to discuss the tax-sharing between the central and local areas,and puts forward the goals and suggestions toimprove the local tax system,which has a definite,theoretical and practical significance.The structure of this paper is divided into six parts,arranged as follows:The first chapter is the introduction,presents the research background of the article,and reviews at home and abroad,and puts forward the basic ideas of the article.The point of this paper is:to improve the system of local tax,three questions should be made clear.First,how is the function of the current tax system and the adaptability of the tax system and what are the main defects in the tax system arrangement?Two,how can we scientifically formulate the local tax system and improve the plan,and rationally arrange the tax system of the local(provincial and county level)?Three,how to make tax reform plan so as to make the tax system play its role,improve social welfare and improve fiscal operation?The second chapter summarizes and analyzes the basic characteristics of the local taxation system.Research shows that the local taxation structure is dominated by indirect taxes,commodity service taxes,and production taxes.the value-added tax and business tax(before the replacing business tax with value-added tax)are the main taxes.Income tax is supplementary tax.In the face of the dual requirements of economic development and social equity,this kind of tax structure and the choice of tax structure have certain rationality under the premise of the local government's choice of economic development as the main policy orientation.The third chapter analyzes the main problems of the local tax system,such as the local imbalances in the existing local tax system and the defects in the structure of the tax system and the tax types.and we conduct empirical tests on the impact of the tax system on local fiscal health.we analyze the imbalances in local revenues and expenditures from the perspective of local fiscal stability and local expenditure fluctuations.It is found that downward shift of the expenditure affairs and the upward shift of tax rights are not conducive to the subnational fiscal consolidation.From the point of view of income decentralization,it is necessary to improve the reform of tax sharing system.It is necessary to improve the proportion of local government's own income,make local government obtain corresponding financial rights and alleviate the phenomenon of excessive concentration of financial resources.Moreover,due to the aggravation of local fiscal revenue and expenditure,leading to the continuous increase dependence of local fiscal expenditure on the transfer payment of higher authorities,which has damaged its financial stability.The volatility study found that the fiscal decentralization has a direct and indirect effect on the volatility of government expenditure since the reform of the tax system,and the overall reflection is that there is a negative correlation between fiscal decentralization and the volatility of government expenditure.The change of financial structure has made the local government financial capacity shrinking significantly.The decline in the level of fiscal decentralization has exacerbated the volatility of government spending,which is not conducive to the stability of macroeconomics,nor to the good operation of local finance.With the further deepening of the reform of the socialist market economy in China,the level of economic development is constantly improved and the technical conditions are improved.Continuous improvement,the profound changes in the actual conditions of the structure of local tax and tax system,the current tax structure is difficult to match the level of economic development.The downward shift of the expenditure affairs and the upward shift of tax rights are not conducive to the financial stability at the provincial level,which makes the local financial resources decline,the financial behavior fluctuates obviously and affects the macro economy.The instability of economic has exacerbated the imbalance between China's social economy and internal and external economies.The structure of tax system based on indirect tax makes the crowding effect of government investment more and more obvious,and because the government intervened too much in the market,it slows the speed of the process of marketization and disadvantageous to the improvement of economic efficiency.Indirect taxes increase inequality in urban and rural areas,which has a greater impact on low-income groups,worsening the overall income inequality,resulting in a reverse regulatory effect of tax structure.In addition,the lack of standardization in the division of taxes affects the integrity and efficiency of the local tax system,which is not conducive to the healthy development of the local tax system;the business tax of the local tax subject tax is not conducive to the fairness of the income distribution.The effect of distribution is weakened.Other tax value-added tax,which provides a large share in local tax,is also not conducive to the fairness of the income distribution;the local main tax is missing,the local tax revenue is lack of stability,and the local tax convergence increases the probability of tax competition.The current tax mode,transfer taxs as the main tax,has not adapted to the needs of the urban transformation and development,and the city's excessive reliance on non tax revenue,such as land transfer income and charge,will only make the urban finance more vulnerable,and will also damage the foundation and environment of the long-term development of the city.Therefore,the urban transformation and development objectively require reforming the tax system,reduce the proportion of the transfer tax,and establish a tax model with direct tax(including personal income tax and real estate tax)as the main tax.The fourth chapter makes a theoretical and data analysis on the reasonable tax sharing ratio among governments at all levels in the local tax system through the establishment of the model and standard of intergovernmental tax division,The research shows that the consistency between the government's service range and tax range and the matching of income and expenditure are the necessary conditions for the reasonable tax decentralization.But the final standard of reasonable division of revenue and expenditure at all levels can only be based on the needs of the residents and the improvement of the welfare utility.When a country's income gap is large,the reasonable tax proportion of the central,provincial and County cities should be around 50%,15%and 35%,at least at the level of 50%,25%and 25%.If the tax ratio of the provincial(regional government)level is greater than the county and city(local government),it may not help to narrow the income distribution gap of the society.The third chapter evaluates the local tax system and analyzes the rationality and defects of the existing tax system structure and tax arrangement in the existing local tax system.And studies the impact of the tax structure on the health of local finance.The local tax system is subject to indirect tax,commodity service tax and production tax as the main body,and the main body is added value added tax and business tax(before the business tax reform),and supplemented by the income tax.In the face of the dual requirements of economic development and social equity,this kind of tax structure and the choice of tax structure have certain rationality under the premise of the local government's choice of economic development as the main policy orientation.With the further deepening of the reform of the socialist market economy in China,the level of economic development is constantly improved and the technical conditions are improved.Continuous improvement,the profound changes in the actual conditions of the structure of local tax and tax system,the current tax structure is difficult to match the level of economic development.The downward shift of the expenditure affairs and the upward shift of tax rights are not conducive to the financial stability at the provincial level,which makes the local financial resources decline,the financial behavior fluctuates obviously and affects the macro economy.The instability of economic has exacerbated the imbalance between China's social economy and internal and external economies.The structure of tax system based on indirect tax makes the crowding effect of government investment more and more obvious,and because the government intervened too much in the market,it slows the speed of the process of marketization and disadvantageous to the improvement of economic efficiency.Indirect taxes increase inequality in urban and rural areas,which has a greater impact on low-income groups,worsening the overall income inequality,resulting in a reverse regulatory effect of tax structure.In addition,the lack of standardization in the division of taxes affects the integrity and efficiency of the local tax system,which is not conducive to the healthy development of the local tax system;the business tax of the local tax subject tax is not conducive to the fairness of the income distribution.The effect of distribution is weakened.Other tax value-added tax,which provides a large share in local tax,is also not conducive to the fairness of the income distribution;the local main tax is missing,the local tax revenue is lack of stability,and the local tax convergence increases the probability of tax competition.The current tax mode,transfer taxs as the main tax,has not adapted to the needs of the urban transformation and development,and the city's excessive reliance on non tax revenue,such as land transfer income and charge,will only make the urban finance more vulnerable,and will also damage the foundation and environment of the long-term development of the city.Therefore,the urban transformation and development objectively require reforming the tax system,reduce the proportion of the transfer tax,and establish a tax model with direct tax(including personal income tax and real estate tax)as the main tax.In chapters four and five,we make a theoretical and data analysis on the reasonable tax sharing ratio among governments at all levels in the local tax system through the establishment of the model and standard of intergovernmental tax division,The research shows that the consistency between the government's service range and tax range and the matching of income and expenditure are the necessary conditions for the reasonable tax decentralization.But the final standard of reasonable division of revenue and expenditure at all levels can only be based on the needs of the residents and the improvement of the welfare utility.When a country's income gap is large,the reasonable tax proportion of the central,provincial and County cities should be around 50%,15%and 35%,at least at the level of 50%,25%and 25%.If the tax ratio of the provincial(regional government)level is greater than the county and city(local government),it may not help to narrow the income distribution gap of the society.The fifth chapter analyzes the facts of the proportion of reasonable tax sharing between the governments at various levels in the local tax system,and finds that the proportion of taxation in representative areas is not reasonable.It is necessary to meet the local public expenditure by adjusting the proportion of sharing taxes or introducing new taxes.The sixth chapter puts forward the basic principles of improving the local tax system,and the policy proposals for reasonable tax structure and tax structure.In order to improve the local tax system,it is necessary to adjust the proportion of the central and local taxes on the basis of the public demand,and to ensure that the governments at all levels are revenue-expenditure matched and the government's service range and tax range is consistent.The median level of local per capita tax revenue is raised according to the reasonable proportion of tax revenue,so that the main public expenditure items can be covered by the tax revenue,'the trend of income bias to the local government is reflected,and the overall tax scale of local governments at all levels can be adjusted by the tax arrangement,and the self dependence rate of the local governments will be improved.To improve the reform of local tax system,we must consider the income distribution function of tax structure,increase the proportion of direct tax,and give full play to the function of the secondary income distribution.In the short term,we should increase the proportion of local distribution in the shared tax.In the long run,we should establish local tax structure with property taxes and excise taxes as the mainstay and other as supplementary taxes. |
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