Research Of Tax Reform

Taxes play a more and more important role in leveling the economic development. Taxes enhance the country construction, economy, social development and implementation capability. For overcoming the difficulties and risks in the China economy, taxes act as an important economic supporting power.Chinese taxation exceeded CNY 2,500 billion in 2004. Some of the non-government companies are losing control due to the government tax burden and the financial reporting criteria's dramatically increase, Some private or medium sized company gained less profit(after tax), which led them to enter "the narrow margin of profit era". The higher macro tax could enhance the country's economic power development but is it beneficial to the long-term economic and social development?Clarifying the "simplify and standardize the tax system, enlarge the scope and extent of tax; reduce tax rate; enhance the tax collection and management system" principle. The author analyzed the two kinds of tax reform from the view of burden reduction and looking forward to find the balance point between tax burden reduction and tax income standing and the positive evidence in economy development.Every country in the world is pursuing and reaching the ideal tax system. China would like its tax system to become more reasonable whatever the solution be it reducing the tax or increasing it. Considering the limitation of the current situation, the reasonable tax system should be close to the taxpayer and practical tax system. The ideal tax system should be the choice of a realistic tax reform that adheres to the practical and realistic tax reform principle.