Study On Tax Loss Of Underground Economy In Our Country

Underground economy has been a problem in the world. Underground economy tax loss not only makes tax in trouble, but also threatens the national economy development. So study on underground economy tax loss in our country not only perfects and complements current research system on underground economy tax loss, improves and deepens research on underground economy tax loss, but also promotes solution to crack down underground economy, control tax loss and other real problems.It has six parts in the paper. The first is an introduction to research background, framework of the paper and main ideas. The second is on the scope of underground economy tax loss in our country. In the part after showing how to measure the scope of underground economy tax loss it measured the scope in our country. The third is the result analysis of underground economy tax loss in our country. It is mainly on which aspect it influences our economy and society in, including financial revenue, information decision, resource division, revenue distribution. The fourth is the reason why underground economy exists in our country. It analyzed mainly in theory and reality. Analysis in theory is mainly from game theory analysis, supplier and demander profit inducement and administration function in economy aspects. Analysis in reality is on tax reason and non-tax reason why underground economy exists in our country. The fifth is experience about how to govern underground economy and control tax loss in other countries, including perfecting tax surrounding, administering emphasis, strengthening law and international cooperation. It is meaningful to explore solution to govern underground economy and control tax loss. The sixth is how to govern underground economy and control tax loss in our country. On the basis of reasons analysis in the forth part, considering abroad experience in the fifth part, it gives special measures to govern Chinese underground economy and control tax loss. It thinks that we should first perfect tax system, narrow the gap between the poor and the rich, improve social insurance system, enhance efficiency in government, and strengthen advertisement, law and international cooperation. We should govern it all-around. We not only attack but also regulate it.The innovation of this paper is analysis of the forming reason of underground economy with Mixed Strategy Nash Equilibrium Game Theory. In further to gain the result that the possibility with the underground economy is not only related with the tax rate, but also with the investigation cost and the punishment to the underground economy.