The Analysis Of The Local Tax Revenue And Economic Development Of Haizhu District

Tax revenue correlates strongly with economic development.On the one hand, the level of tax revenue is determined by the level of economic development. On the other hand, tax revenue exerts great impact on economic development.In recent years,Haizhu district has experienced a great progress in economic development. At the same time,the local tax revenue of Haizhu district has maintained a high speed in development.By the end of 2009, the local tax revenue of Haizhu district has reached 4.906 billion yuan. Tax revenue is the main source of fiscal revenue. The local tax revenue of Haizhu district provides a strong financial guarantee for the economic development and the social stability. However, the growth of the local tax revenue does not always go hand-in-hand with the growth of economic development in Haizhu district, which has aroused much public concern. This paper analyzes the reasonability, reasons and solutions of this phenomenon by focusing on the relation between the local tax revenue and the economic development of Haizhu district.By utilizing detailed statistics and integrating the methods of qualitative analysis, quantitative analysis, comparative analysis, inductive analysis, positive analysis and normative analysis, this paper endeavors to analyze the local tax revenue amount and its structure, the macro tax burden level,the macro local tax burden and the flexibility of local tax revenue of Haizhu district.Based on these analyses, a time series formula concerning the local tax revenue and the economic development of Haizhu district will be built up, and the reasons why the growth of the local tax revenue does not go hand-in-hand with the growth of economic development in Haizhu district will be discussed. Finally, some suggestions on boosting the development of both the local tax revenue and the sustained economy in Haizhu district will be presented.