Motivation Analysis Of The Finance And Tax System Changes Of The People's Republic Of China

Finance is the concentrated reflection of politics and economy. As a part of financial category, financial system is the important constituent parts of state economy system as well as country administration system. And they must be subordinated to country political system and the request of national politics. For this reason, when we research the vicissitude of financial system, we cannot only carries on the analysis from the angle of pure economy but also from the angle of non-economy especially the political angle.This article brings the factors of politics and social ideology into the analysis of financial system vicissitude. In accordance with the theory of institutional changes and under the premise of assuming government is "the economic man", the article which mainly uses positive analysis method and takes China's unceasing changes of legitimacy demand as a clue analyzes the request and the influence of the legitimacy demand to the financial system in different time. The basic train of thought is as follows. As the rational economy man who is willing to maximize its legitimacy, the government is obliged to reform in order to meet the need of legitimacy, to consolidate the original foundation of legitimacy, or to seek a new foundation of legitimacy. As a result, the change of financial system is bound to be influenced by the demand of legitimacyThe basic conclusions of this article are as follows. Financial system of the state is indissolubly linked with the interest of the country. The efficient rule can hardly do without the backing of legitimacy. When the"human need"inside and"demonstration pressure"from abroad are too big, it will affect the base of legitimacy used by the ruler to dominate. Thus the ruling clique consolidates its legitimacy by incremental reform. In China, the traditional highly concentration financial system comes from planned economic system which is determined by surpassing strategy. And the government's demands of legitimacy as well as conditions in that time codetermine the choice of developmental strategy. This article further indicate that because of the particularity of traditional system, the reform of financial system become a breakthrough in China reform. In the future 20 years, the innovation of finance and taxation system will be a important role which can deepen the reform of system and obtain new resource of legitimacy.