China's Industrial Structure Optimization And Tax Policy Applications

The Temporary Provisions About Promoting the adjust of Industrial Structure, which was made in September,2005,goals at advancing the optimization of industrial structure and making it sure that the first, second and third industries are healthy and coordinate. And the 17th National Party Congress Report pointed out that the governments of china must paly a role as macro-controller and guider in the market,use financial and tax policy to advance the optimization of industrial structure and economic growth.Nowdays the tax policy is not conducive to the industrial structure.For example, the expanding of the enterprises scale and technology innovation are not smoothy,and the expansion of domestic demand is still limited.there are a lot of literatures on the optimization of industrial structure,but the literature about the policy on industrial structure and tax policy is still relatively less. This article make a try to explore the transmission mechanism from tax policy to the optimization of industrial structure,which base on the the oretical and practical ways.The article answere why many states in the world used the industrial structure policy in the past,belive that"market failure"in the developed countrys is popular,and"catching up strategy","international environment change","labour surplus"are the main reasons in the developing country. It analysis the features of tax policy,say it a moderate and indirect regulation means.Alse it analysis the transmission mechanism from tax policy to optimization of industrial structure,belive that there a path from tax to industrial structure. On the one hand,the tax change the factors of production—the labor, capital and technology and so on.On the other hand, it impact the consumption, invention, government procurement and international demand. From these ways,the reasons why the tax policy is not conducive to the industrial structure are discovered.Then the research make a change from domestic angle to internation angle,and find out the international industrial transfer and industrial competitiveness are the external causes to use industrial structure policy.The government will invent the favourable policy depending on resource endowment and other external condition,or the industrial structure will not get promoted and the economic will not develope for a long time.Finally,the article aggregate the experience of the developed countrys, which have used tax policy optimize the industrial structure such as the unite states,Japan and Korea.And at last, it propose relevent policy recommendations for our country.