The Relationship Between The Tax System And Enterprise Resource Allocation

Currently, almost all the developed capitalist countries has been established direct tax-based tax system. China's current tax system remains dominated by indirect taxes.This paper briefly introduces development of tax neutral theory, tax should be neutral, which does not affect the normal operation of market economy, does not distort resource allocation. Tax neutral theory is based on the excess burden of tax theory. After comparing the course of tax reform at home and abroad, we can see from the indirect to direct tax reform is a trend, the internal reason is that the world increasingly heavy tax neutral role.Value-added tax, business tax and other indirect taxes put strong interference on the relative prices of commodities, change the choice of producers and consumers, have a distorting effect on the allocation of resources. The income tax does not change relative prices of goods, the efficiency of resource allocation is less than the loss of indirect taxes. So Marshall indicated that the direct tax is better than the indirect tax on the allocation of resource.The article describes the status of Railway Transport Enterprise, combined with its specificity, through value-added tax, business tax, income tax analysis, the reform of railway transportation enterprises should be two-pronged approach, in indirect taxes and direct taxes on separately.Through theory and practice of analysis to determine the direct and indirect taxes on the role of the allocation of resources, we can make a more feasible proposal for the tax reform.