The Financial System Between The Central And Local During The Period Of Nanjing National Government (1927-1949)

In last years of Qing Dynasty, the system of feudal financial centralization of state power collapsed gradually, and the national ownership of property was "moved outside" and "shifted down" seriously. Imperial Palace of Qing Dynasty had to begin to imitate and set up western financial system, and divided finance as state finance and local finance. Although this financial reform action had not succeeded, it was a try which carried on the financial reform learning from the west in the latter stage of Qing Dynasty, and offered some deep experience and lessons for financial reform in the near future.After the Republic of China had been set up, the financial state was still unable to make ends meet. There were two attempts for the establishment of new financial relationship between central government and local government during the Period of the Northern Warlords from 1911 to 1927, including the reform of a standard of revenue and expenditure division of the central and locality carried by Yuan Shikai, and "Tian Tan Constitution", which imitated the modern tax system of western direct tax, indirect tax and tax on acts, carried by Cao Kun in 1923.Nanjing National Government, founded in 1927, focused more on strengthening the control forces of the central government's finance. What's more, it established a central tax system with tariff, salt tax and consolidated tax as the principal part, and a local tax system with feudal land tax, sales tax and contract tax as the principal part, with the help of the reform including the compartmentalization of financial income and expenses of central and local government, the return of tariff and salt tax dominion, revise of tariff regulation, reform of salt tax system, the abolition of the Likin system, the establishment of consolidated tax, the regulation of feudal land tax and the establishment of new tax. The whole series of the financial reform carried by Nanjing National Government during 1927 to 1949, affected the course of Chinese taxes reformation greatly and transformed the tax system of China from feudal tax system to the capitalism tax system, which formed the rudiment of modern capitalism tax system and strengthened Nanjing National Government's finance and economics status, and consolidated its regime.The main point of this text is, the series of the financial reform carried by Nanjing National Government from 1927 to 1949, aim to set up the new shared-tax system in order to distinguish the duties and financial rights of the central and local, and establish the tax agency of their own, which will bring the income and disbursement activity of the central and local government into the supervision of the state legal systems. The experience and lessons of the reform could be used as a source of reference for China's financial system reform at the present stage, although the financial reform of Nanjing National Government could not centralize the central financial power out of the state of disruption at that time.