Research On Tax Policy For Economic Growth

Economic growth always is a eternal topic in the human social development .Since the end of 80 ages, the reform and open to the world has gobbled up our country and this historic change leads Chinese economy to quickly increase. After the high speed economic growth pulled by consumptions in the 80 ages and mostly invest of Hongkong and Taiwang's capital at the beginning of 90 ages, Chinese economy enters construction adjustment and faces a series of unprecedented rigorous problems. The government decidedly adjust the strategy of macro control and carry out pro-active fiscal policy .In practice, it has made great effect and is correct, but there is still some problem . There are many reasons for it and the default of tax policy is one of them. Tax policy that plays as one of regulative means has something to do with macro-economics and micro-economics. It also has important functions to regulate economic structure and demand structure. With other fiscal policies, tax policy that is one important part of fiscal policy makes up of powerful regulating economic levers of government .We can obtain the aims of government if the two can concert with each others, otherwise it will make an unbalance and counteract of policy.Today Chinese economy is in the stage of change and the tax policy also face the adjustment .The reform of fiscal and tax policy has made the ratio of TAX/GDP reduce and fall to 10.3% in 1995, so the government has bring up the fiscal target to increase the two weight (fiscal income/GDP, central fiscal income /gross fiscal income).Significant exaltation of revenue has take placed in recent years and the ratio of macro tax burden has exceeded 16% in 2001. What will happen if we improve the two ratios especially when the economy is decaying .How to decide the level of macro tax burden in China .How does tax policy influence the demand and supply then economic growth. All these are worth of cannily studying by us.So we should try to turn the trend of tax policy's default and fetch up the gap to give the tax policy its status. Under the current economic situation of our country : the economic internal force of growth don't come into being and the base of growth is not steady , it is necessary to analyze the economic trend , tax policy and adjust the tax policy to exert the function to improve the effectual demand and supply.So the contents of the study : first is to form tax-policy's theory of economic growth including the effect of tax to invest , consumptions,output, technical progress; Second, we demonstrate to analyze the relations between tax policy and economic growth and compare Chinese and foreign ones. Third, tax policy options to make progress of economics. We study tax policy from four sides: macro tax burden and economic growth; tax policy and aggregate demand; tax policy and effective supply; taxpolicy and technology.At the side of aggregate demand.: by studying the ratio of demand in economic growth and the factors of demand to get which is the most important factor to make the economy to grow . We also study tax policy how to improve demand in china .We also set forth the relations between aggregate demand and economic growth and explain tax policy how to influence aggregate demand .We get the relations between the tax policy and economic growth by the estimative multiplicator of tax, put forward tax policy to extend consumption, improve the level of invest , enlarge output.At the side of effective supply: We first investigate the effective supply and its role in the whole economics., then pay an importance on analysis how the tax policy influence private invest, labor supply and so on .We study the tax policy that excite invest, accelerate the state enterprises and small enterprises , then put forward relative suggestion.At the side of science and technology progress: we study the relation between the progress of science & technology and economical development ,then investigate the importance that the tax policy pay on the progress of science. Point out that it is not e...