Study On Reducing The Tax Cost

In a market economy, the government is based on public opinion and public authority of a political organization. Government's basic mission is to respond to public demand for the provision of public goods and services for the public interest. However, the provision of public goods and services consumes economic resources, that is, to pay costs, such costs can not by way of voluntary contributions consumer compensation, therefore, the use of state coercive power to tax the private sector to become a major public offer cost compensation mechanism. Government resources by way of taxation from the private sector during the transfer to the public sector is bound to spend some resources, it is the efficiency of resource allocation to meet the unavoidable costs, such costs or revenue costs. The existence of tax costs, will lead to the loss of both tax collectors productivity, affecting the efficiency of tax administration.Activities of tax revenue to pay the cost as the price is an objective. Therefore, the Government before making tax administration activities, the tax should be weighed against the costs and tax revenues, to ensure the tax net to meet the needs of the national provision of public goods. Reasonable control tax costs, help organize financial income to reduce tax distortions in the economy, to achieve fairness and efficiency goals. Therefore, tax costs have become an increasing concern around the world.The long time the old planned economic system concepts, both the policy-making body, or the tax authorities, departments and grassroots leaders, has been working as a purely government revenue collection and management behavior, rather than economic behavior, a sense of tax costs. Not the simplified tax system, tax incentives too, will inevitably lead to tax costs, tax costs. Since the new administration model introduced a short time, coupled with deepening the collection and management reform itself needs some investment, tax authorities are bound to have increased expenditure on purchase of equipment, thereby also increasing the tax cost.In recent years, with economic development, the rapid growth of China's fiscal revenue, but our analysis of the current status of tax costs, tax costs in China compared to developed countries and international high tax costs are further reduced space. Therefore, in our study and to explore the tax status of tax cost cost optimization is necessary. In this paper, the combination of theoretical and empirical methods, combing the full tax cost of the system based on the theory, analysis of the cost of our tax status, that should tax the cost of our consciousness, tax structure, tax agencies set up, tax agents and other aspects , by increasing awareness of tax costs, optimize the tax structure, streamlining the tax authorities, improve the tax agency and other measures to reduce the tax costs, increase tax efficiency.