Study On Tax Policy In Border Area

Since 1978, China’seconomyhasdevelopedrapidly,but the development is not balanced in the regions.In different periods, our country implements different strategies for the regional economic developmentfrom the previous disequilibrium development strategyto the balanced development strategyto promote the coordinated development of regional economy. The border area in the hinterland of the motherland, and borders 14 countries. It’s an important geographical location with rich resources.Since the implementation of border development and opening-up policy for 22 years, countries have introduced a series of preferential policies to boostthe frontier’s economic prosperity, such as development of the western region, promoting the edge and enriching the people,expanding the opening-up of frontierarea. It achieved a remarkable success which release the huge economic potentialof the border area and increased people’s living standards quickly. But compared to coastal areas of the development of all-round, multi-level and multi-angle, border area development and opening is lagged behind seriously.It leads to unbalanced development of regional, this is not only badfor the improvement of overall national, but also restricts the development of the eastern coastal areas.In order to further narrow the gap between the eastern coastal areas and border areas, realizing the regional harmonious development is still one of the important strategies of our country.Tax policy is an important means of national macro-economic Control.Tax policy can ironing economic fluctuations, optimize the allocation of resources, regulate the income distributionwith the government investment, transfer payment and tax preferential policies, providing inner impetus to economic development in underdeveloped regions.It has very important practical significance of promoting the coordinated development of regional economy. This paper analyze the development of border area in China from the aspect of tax policy.Currently, with the development of economy, the tax policy expose new problemsgradually, such as tax can’t support the demand of border economic development, high threshold of current industry preferential policy, specific aimofinsufficient, frontier tax transfer to developed regions,export refund policymake the imbalance of border area trade valueand tax revenues. Therefore, working out the reform and perfection of tax policyof border areas play an important role of narrowing the gap of development among regions and promoting the balanced development of regional.First of all, on the basis of reviewed the related domestic and foreign literature, the paper introduce the basic meanings of tax policy and the theory of coordinated development of regional economy with interpreting the meanings of the tax policy, objectives, tools and the gradient theory, the trickle-down effect, center-peripherytheory, functional mechanism of tax policypromoting the coordinated development of all regions. On the basis of the theory, analyzingthe economic development of border area from the vertical and horizontal.Then summarizing our country’ tax policies, and analyzing the weaknesses in the implementation of the tax policy.Next, conducting empirical analysis on the effect of border area’s tax policy. Choosing the tax burden as an indicator to analyze the relationship between the growth rate of per capita GDP, fixed assets investment. The results show that the higher the tax burden of border area, the more adverse to frontier area’s economic development. It explains the reasons of slow development of border area from the aspects of tax policy. The current tax policies are not adjusted to promote the frontier area’s economic development.After that selecting the proportion of primary industry, second industry and third industry and the proportion of enterprise surplus to study its relationship with tax burden of frontier area. The results show that the proportion of the first, second, third industry and the proportion of enterprise surplus is negatively related to the tax burden of border area.Finally, according to practical situation, offering a proposal that promote the border area’s economic development.