The Research On Actuality And Mechanism Of Local Tax Competition In China

Tax competition in our country has profound influence to interregional distribution of economic and taxation interests. It has become an important phenomenon and has a far-reaching effect on our economic operation. In order to strengthen macroeconomic control force of tax and promote tax reform, it is very necessary to research the actuality and mechanism of local tax competition in China. This thesis give an intensive theoretic framework research of local tax competition in public finance theory, and discuss the conception, factor, category and effect systematically. Based on the theoretic framework, we expatiate on the actuality and two-sides effect of local tax competition in our country, especially in west region. In order to illuminate the influence of change of local governments' taxation policies to factor mobility and economic growth, the thesis analyzes operational mechanism of local tax competition, and establishes a spatial model based on Tiebout model. Based on theoretical analysis, we will make an experiential analysis about local tax competition under special system in China. This paper also indicates that basic purpose of research on tax competition is not to eliminate tax competition, but to find out effective solutions on forming a sound circumstance for the healthy development of tax competition, developing an objective and impartial opinion on the tax competition, and effectively solving the following problems and contradiction between local jurisdictions in the practice.