Corporate Income Tax Policy And Regional Economy Developing In Harmony

Under the background of the economic globalization, economic development ofall the countries all over the world will unavoidably need the store and coordinateddevelopment together of both domestic economy and foreign capitals economy. Mostcountries adopted the proper tax revenue preferential policy at different stage ofeconomic development, in order to absorb the foreign investments and promote therapid development of national economy. One case in point such as USA, Japan, India,Singapore all went through this process. Foreign experts and scholars have beencarrying on a large amount of systematic research and analysis on the preferentialpolicy of the tax revenue. At present, there are the following states in the economicevolution of our country:(1)the absolute disparity of the regional economy isincreasing constantly;(2)the foreign investments have very great impetuses to theeconomic growth of China;(3)the enterprise income tax rate and preferential policyof the tax revenue of the inside and overseas-funded enterprise are not unified. Directagainst the disunion of enterprise income tax rate and preferential policy of thedomestic-investment enterprise and foreign-investment enterprise, two kinds of viewshave appeared at home: some scholars think it should unify, in order to lighten the taxburden of domestic-investment enterprise, promote the development ofdomestic-investment enterprise's economy, develop the national industry in a morecost-effective manner;while other scholars hold the opinion that unify or not havelittle effect on China's present economic development.Under this background, adjustment of enterprise income tax ofdomestic-investment and overseas-funded enterprises and the development of regionaleconomy in harmony were selected as the research object of this paper. This articleuses a large amount of economic data to study the current situation of the gap ofdevelopment of regional economy of the western and eastern of China.This paperadopts logarithm return to analytical method analyze between foreign investment anddirect contribution of China economic development, combines present inconsistent ofincome tax rate between inside and overseas-funded enterprise, then puts forward thetarget to be studied:(1)whether the corporate income tax rate of domestic-investmentand foreign-investment enterprises should be unified;(2)how great on earth is theinfluence of unified income tax rate.Study and answer to this question is mainlydivided into four parts as follows:analyse the distributing and economic effect of areaof the foreign direct investment;set up system dynamic model of the economic systemof tax revenue and fix primitive parameters of this model;carry on dynamicemulations and predicts of the economic system of tax revenue;cost-effective analysisof income tax rate adjustment.In the last part of this article,draw the basic conclusionto the income tax rate,put forward the corresponding policy recommendations.