Research On The Potential Tax Capacity Of Sichuan Province Based On Tax Effort

The annual growth rate of tax revenue is 9.93% in Sichuan province during 1997-2006, so the growth rate is high, but it is lower compared with average growth rate of western area and national growth rate, average growth rate of western area is 16.96% and national growth rate is 14.98%. Measures of The potential taxable capacity of Sichuan province and how much to exploit it are given in this thesis based on the data during 1997-2006 and tax effort using fixed effect model. The tax effort in Sichuan province is compared with other provinces and cities. The conclusions are there are two reasons to explain why the annual growth rate of tax revenue is so low, one is the potential taxable capacity low, and the other is to exploit it inefficiently.This paper is divided into three parts. The first part is the first four chapters. Describe the tax effort and compare it in Sichuan province with the tax effort in other provinces. The second part explains the reasons why there's a low tax increase rate in Sichuan province. The three part is the last two chapters. Give the suggestion to improve the potential taxable capacity of Sichuan province.The result is helpful for increasing potential taxable capacity and raising tax.