A Study On Transfer Payment System On The Basis Of Tax Distribution System

The multi-layer government system is a common phenomenon in most countries in the world, and it brings about greater complexity in intergovernmental fiscal relations (that is, transfer payment system in narrow sense). China's government is a multi-layer government too. Through many times of transformations after 1949, finally today's transfer payment system on the basis of tax distribution system came into being, and this system is improving step by step. How to analyze the problems of transfer payment system among governments of China's by means of transfer payment theory and solve these problems is the purpose of this subject.There are five parts in this paper. The main contents of each part are as follows:Introduction raises the significance of this subject, summarizes the research status in quo and brings forth research purpose of this paper. In this paper, the author integrates empirical analyses and normative analyses and applies the theory to practice.Chapter 1 is about the basic theory on transfer payment system. In the chapter, this paper introduces some transfer payment concepts on different layers, the classification and features of transfer payment concepts, and the general mode of transfer payment. It also analyzes the efficiency and effect of the transfer payment. Because the transfer payment system is founded on the theory of fiscal decentralization, the theory is introduced generally in this chapter. All these basic theories lay a foundation for the latter demonstration.Chapter 2 is about the comparison and analysis of overseas transfer payment systems. The purpose of this part is to serve as reference in the reform and further perfection of China's transfer payment system. According to different taxation limits of authority, the fiscal systems of organization in western countries can be divided into decentralization of state power (say, the U.S.A.), centralization of state power (say, Britain) and the combination of both (say, Japan). In this chapter, the author takes the U.S.A., Britain and Japan for instances, trying to sum up the successful experience.Chapter 3 is to analyze the history and reality of China's budget management system and transfer payment system after 1949, especially makes an empirical study on the policy effect of tax distribution system in order to find out the problems of thetransfer payment system.Chapter 4 is the conclusion of this paper. On the basis of the related theories, after analyzing the history and reality of China's transfer payment and comparing with the situation in some western developed countries, this part brings forth some suggestions to perfect the transfer payment system, such as making the division of fiscal power and responsibility between the central government and local government more transparent, perfecting the legal system of transfer payment, improving the standardization of transfer payment system, making clear the orientation of taxation reformation, and so on.