The Economic Effect Of The Tax

Since the country had appeared ,it had tax. Tax is regarded as the natural obligations. But tax exactly how to influence social welfare and How to influence social economy operation. The economists of history have proposed tax principles, but these principles are qualitative analysis. Although it has certain macroscopic guide significance, but could not give guidance to further details of our tax system design, especially for taxes set only one only considered the collection efficiency principle, not from economics to analyze the social economic effect of taxes and social economic efficiency. Actually until modern economics system has been built, it is possible to study the social economic effects true tax further quantitative. The tax excess burden of taxation theory of Marshall is the first economic effect of quantitative analysis theory, This theory is also the modern taxation theory foundation. On this basis, Tax economists about the economic effects of various taxes are analyzed in detail, Formed various theory. The design and perfect of modern tax system is established in these economic effect of tax based on detailed analysis.Before reform and opening-up, under the planned economy system, for the finance of our country the importance of income tax is not so prominent, fiscal revenue mainly rely on that the hand profits of State-owned enterprises. With the reform and opening, the further promotion of our country's modern tax system has been gradually established. In 1993, China decided to establish a socialist market economic system, national finance and taxation as economic regulation and redistribution of important tool, is an important breakthrough in economic system reform. In order to give the market economy system establishment create conditions, the 1994 tax reforms, established the current tax system, effective safeguard the basic framework of the stability of government revenue and growth of China's economic development, plays a total want to guide and promote role.This paper is divided into five parts: The first part is the development process of taxation theory were reviewed; The second part is the summary of economic effect theory of various tax; The third part is the market failure cases of tax function and effect are analyzed, and the method of how to use taxes to correct market failures are preliminarily discussed the problem; The fourth part is the economic effects of the main categories of taxes on specific analysis and some constructive conclusions are drawn. The fifth part for our current tax structure and tax collection system reform, puts forward some principle Suggestions.