Research On Regional Tax Transfers In China

The tax is one of the most important sources of local fiscal revenue for local governments. It is a significant source of funding to public goods and services, infrastructure building and economic development. Whether the horizontal distribution of tax revenue among local governments is reasonable is not only closely related to the actual economic benefits, but also linked with the coordinated development of the country’s overall economic structure and balance.In general, the attribution of tax revenues and tax sources, tax undertakings should be matched with each other. When they don’t match between the local government at the same level, that means tax horizontal transfer. Horizontal transfer direction and degree of tax revenue among local governments will affect public service functions effectively and the inter-regional economic development gap will be larger. Therefore, it is important to grasp the accurate allocation status and relationships of horizontal tax among governments by quantifying degree of inter-regional tax horizontal transfer. This passage is divided into five chapters.The first chapter, instruction, describes background and significance as well as the research situation at home and abroad. The second chapter, based on the objective data, analyzes Chinese horizontal economic and tax allocation status quo, especially researches on the corporate income tax and VAT and as well as some typical cases. In the third chapter, calculation method of tax horizontal transfer is clarified. From the related economic and tax data in Chinese Statistical Yearbook between2004and2011,1calculate the deviation, the amount of deviation and coefficient of dispersion of tax and tax origins in our31provinces, autonomous regions and municipalities directly under the central government. The fourth chapter analyzes the mechanism reasons and specific reasons for horizontal transfer of tax. Tax allocation theories, including the distribution of tax theory and the tax equity principle are also mention in this chapter. The last part is about analysis on the negative effect producing by tax horizontal transfer. Strategies on inter-regional tax horizontal transfer and summary as well as conclusions are described in the fifth chapter.