| The report of the 20 th National Congress of the Communist Party of China pointed out that Chinese path to modernization is the modernization of common prosperity for all people,improving the level of public services,enhancing balance and accessibility,and firmly promoting common prosperity.Equalization of basic public services is an inherent requirement for common prosperity which needs to be based on optimizing the tax system and promoting the rational distribution of fiscal and tax revenue among regions.The horizontal tax distribution among governments,where the tax distribution among local governments at the same level,is a fundamental institutional arrangement that determines the distribution pattern of financial resources among regions.The division of tax ownership among regions will have a direct impact on the fiscal revenue and public service supply capacity of governments in different regions,which is of great significance for solidly promoting common prosperity and taking the road of Chinese path to modernization.The horizontal tax distribution in my country is based on the location of the institution and the place of production and operation activities.In the era of industrial economy,the horizontal tax distribution model of "local management and local division" has mobilized local governments to produce enthusiasm and reduced taxation costs.The trend of decentralization,disintermediation,the same tax source may be distributed in different areas and the distribution is extremely uneven.If this horizontal tax distribution model remains unchanged,the tax revenue is highly consistent.The severe "tax and taxation sources deviate" during the intercourse.Local government taxes are actually borne by taxpayers outside the jurisdiction,and areas with tax sources have not obtained the tax revenue.In areas without tax sources,they have obtained taxes from other tax sources,which is not conducive to regions.The equalization of financial resources and public services have widened the gap between regional economic development,caused distortion of resource allocation,and affect the effective play of public service functions of local governments.Therefore,it is crucial to establish a scientific and reasonable interregional horizontal tax distribution relationship.The thesis focuses on the core issue of interregional horizontal tax distribution,following the research idea of "posing questions analyzing problems setting schemes evaluating effects",and based on the theory of tax distribution,intergovernmental decentralization theory,intergovernmental fiscal equilibrium theory,and regional coordinated development theory,and combining the experience of international tax distribution and interregional tax coordination,explores the three major taxes in China,namely value-added tax,corporate income tax The desirable horizontal distribution scheme of consumption tax is evaluated by using a computable general equilibrium model to evaluate the policy effects of the simulation scheme,providing basis and empirical support for intergovernmental horizontal tax allocation.The specific research content is as follows.First,it defines the concepts related to tax collection and management rights,tax revenue attribution rights,tax and tax source deviation,and intergovernmental horizontal tax distribution.It also analyzes the literature on horizontal tax distribution and tax source deviation of value-added tax,corporate income tax,consumption tax,and other taxes at home and abroad.Then,it introduces China’s fiscal and tax system and economic background,analyzes the reasons for the formation of the "Chinese style horizontal tax distribution model" and the existing problems in the current interregional horizontal distribution mechanism.In terms of specific types of taxes,the principle of value-added tax production places strengthens local protectionism and weakens the endogenous power of local cultivation of consumption environment;The tax payment mechanism in the place where the enterprise income tax is registered has led to the phenomenon of "headquarters economy" and tax depression;Consumption tax is levied in the production process,causing the tax burden to be exported from the production area to the non-production area.At the same time,the rapid development of the digital economy will also aggravate the deviation between tax revenue and tax sources,and the phenomenon of tax revenue shifting from underdeveloped regions to developed regions is evident.The problem of deviation between tax revenue and tax sources is prominent.In order to measure the degree of horizontal tax distribution imbalance and benefit distortion,the deviation between various tax categories and tax sources in various regions was measured.The results showed that Beijing,Shanghai,Guangdong,and other regions were the net inflow and beneficiary areas of tax transfers,while Shandong,Jiangsu,Henan,Hunan,Sichuan,Hubei,Jiangxi,Shaanxi,Anhui,Fujian and Chongqing were the net outflow and damage areas of tax transfers.The transfer of taxes that should be attributed to the central and western regions to large cities and eastern regions with developed industrial and commercial industries has exacerbated the financial gap and inequality in public services between regions,and is not conducive to balanced and coordinated regional development.In this situation,it is particularly necessary and important to explore the mechanism of horizontal tax distribution among regions.Second,it is the key chapter of the thesis,namely,Chapters 5,6,and 7,which respectively design and simulate the interregional horizontal distribution of three main taxes: corporate income tax,value-added tax,and consumption tax.Corporate income tax uses foreign experience for reference to conduct interregional tax distribution based on the sales,labor,and asset three factor formula method;The value-added tax considers the contributions of both the production and consumption regions,and the two regions share the value-added tax revenue.The portion of the value-added tax collected by each region is distributed according to the principle of consumption regions,and the proportion of population and consumption is distributed horizontally between regions;The consumption tax will be collected under the two tax categories of refined oil and cars,and the tax will be transferred to local areas.The simulation results show that the interregional distribution of corporate income tax can make the distribution of corporate income tax more balanced among regions,and also contribute to the growth of investment,exports,residents’ welfare,and GDP at the national level,with the national GDP increasing by 0.244%-0.309%.The interregional distribution of value-added tax and the improvement of the relative financial structure of local governments can help stimulate local governments to improve the production,business,and investment environment,and promote sustained and stable economic growth.The interregional distribution of consumption tax has reduced the provincial Gini coefficient of per capita financial income,narrowed the gap between provincial and local financial resources,and strengthened local financial resources.This is conducive to improving the construction of local tax systems,and also promoted economic development.GDP,investment rate,and household consumption have increased by 0.096%,0.035%,and 0.052%,respectively.Third,based on the research findings and international experience,the following recommendations are proposed.First,clearly define the ownership of tax revenue and the right to tax collection and management.In practice,the tax collection and management rights exercised by regions can be separated from the tax revenue ownership rights,that is,the tax collection and management rights should be exercised in accordance with the "principle of minimizing the cost of collection and payment",and the contribution of local governments in the production and consumption regions to the creation and realization of value should be fully considered when dividing the tax revenue ownership;The second is to establish an interregional tax distribution coordination committee to reduce interregional tax conflicts,guide the virtuous cycle of taxation,help improve China’s current horizontal tax distribution system construction,and promote the realization of high-quality regional economic integration;The third is to design scientific and reasonable intergovernmental horizontal tax distribution rules.The horizontal tax allocation rules between governments should comply with three principles: the principle of tax source contribution,the principle of "cost benefit",and the principle of tax incidence to ensure that the tax revenue matches the tax source contribution and tax incidence.The horizontal distribution of enterprise income tax should be based on the contribution of governments in different regions to the value creation of economic entities through public service provision.The horizontal distribution of value-added tax should adopt the distribution principle of "collection and management of production sites,division of production sites +consumption sites".The horizontal distribution of consumption tax should gradually adjust the collection links of various consumption tax items and allocate local areas.The innovations of the thesis are mainly reflected in the following four aspects:First,innovative research perspectives.The full text focuses on the core issue of horizontal tax distribution among regions.Domestic scholars have paid more attention to the vertical tax division between the central and local governments,while the research on the horizontal tax division between local governments,which is an important component of intergovernmental fiscal relations,is insufficient.Moreover,existing research has not fully revealed the characteristics and logical,financial,economic,and social effects of China’s horizontal tax distribution.The current horizontal tax distribution model of "local collection and management,local division" in China,coupled with factors such as strategic pricing by enterprises,cross regional operations,and headquarters economy,has led to the emergence of problems such as the deviation between tax revenue and tax sources,large disparities in economic development between regions,unbalanced development of industrial structures between regions,and insufficient consumption,which is not conducive to achieving the goal of coordinated regional development.Therefore,this thesis focuses on the core issue of regional horizontal tax distribution,combining theory and international tax distribution experience,and designs a suitable horizontal distribution scheme for China’s three major taxes,namely value-added tax,corporate income tax,and consumption tax.The proposed horizontal tax distribution scheme is simulated and analyzed.Second,innovation in research methods.The construction of a multi-regional CGE model for China’s horizontal tax distribution provides an analytical framework for the study of interregional horizontal tax distribution.The existing research on horizontal tax distribution mainly focuses on theoretical analysis and quantitative research,lacking systematic analysis of the fiscal and economic effects of China’s horizontal tax distribution mechanism,and also lacking systematic quantitative analysis of the policy effects of reform based on the design of alternative optimization schemes.The CGE model is an important tool that can quantify the intersection and comprehensive impact of various important macroeconomic variables.It has unparalleled advantages over partial equilibrium analysis and can comprehensively evaluate policy effectiveness.Compared with other macroeconomic models,the CGE model is more accurate and flexible through "calibration" of results,especially in tax policy research comparing with DSGE model.Based on the reality of China,this thesis constructs a multi-regional CGE model for taxation with Chinese characteristics.For example,introducing the concept of collection ratio,using the input output method to calculate value-added tax payable,constructing a CGE model that includes 31 provinces,municipalities,and autonomous regions in China,dividing the government into central government and 31 local governments,dividing value-added tax,corporate income tax,consumption tax,and personal income tax are embedded in the multi region CGE model.Third,research data innovation.Aiming at the difficult problem of difficult access to statistical data or significant differences in the statistical caliber of various indicators,the account balance method was used to correct the data and complete the preparation of the entire multi region SAM table,breaking through this difficult problem.In the study of enterprise income tax and value-added tax,the departments are divided into agriculture,mining and processing industry,light industry,heavy industry,electric heating,gas and water production and supply industry,construction industry,transportation industry,and other service industries;In the study of consumption tax,the specific sectors of consumption tax,such as tobacco and alcohol,refined oil,and automobiles,are divided separately.The specific sectors include agriculture,other industries,tobacco and alcohol,refined oil,automobiles,construction,transportation,and other service industries.Such division method can explore in detail the impact of the backward collection of consumption tax items on regional financial and economic indicators.Fourth,new research findings.We found that the simulation results of the partial formula allocation scheme for local sharing of corporate income tax are better than the current interregional distribution method for corporate income tax.The new scheme makes the distribution of corporate income tax more balanced among regions,contributing to the growth of investment,exports,resident welfare,and GDP at the national level.The policy effect of distributing the local share of value-added tax based on the principles of production and consumption places makes the distribution of value-added tax among regions more balanced,conducive to overall economic development,reasonable and desirable.The consumption tax reform plan,in which the tax on refined oil and cars is shifted back and transferred to local governments,has narrowed the financial gap between provincial and local governments and promoted financial balance between regions,but has little impact on the effect of financial balance within regions.In addition,the consumption tax reform will distribute these taxes that originally belonged to the production areas to the consumption areas,and the consumption tax of the local government in the consumption areas will increase as a whole,and the benefits will be polarized. |
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