The Policy Effect’s Analysis Of The Reform Of Rural Taxes Transfer

The reform of rural taxes transfer payment is an important part of financialtransfer payments, and is also the main supporting measures of implementing thereform of rural taxes. With the size of the reform of rur al taxes transfer paymentincreasing year by year, people pay more and more attention on the effect of thispolicy. This paper conducted a evaluation on the effect of the reform of rural taxestransfer payment policy for the first time, providing some enli ghtenments forimplementing the reform of rural taxes, consummating the reform of rural taxestransfer payment system, solving the Farming problems and realizing the balanceddevelopment of region in China.This paper constructs a measurement model,based on the basis of the policysupport of agricultural development theory and the transfer payment on the localgovernment spending theory, using the fixed effects model to conduct acomprehensive evaluation on the effect of the reform of rural taxes transfer p aymentpolicy on1428county administrative units during2003-2007in our country, thispaper studies the influences respectively of the reform of rural taxes transfer paymenton farmers’ income, agricultural output, long-term agricultural development, and thenestimates differences of the reform of rural taxes transfer payment on farmers’ income,labor productivity, labor productive growth among the eastern, middle, westernregions. The results show that the reform of rural taxes transfer payment hassignificant positive impacts on farmers’ income, agricultural output and long-termagricultural development, obtain that the reform of rural taxes transfer paymentproduced policy spillover effect on further analysis which not only increases thefarmers’ income, but also encourages farmers to improve the efficiency of agriculturalproduction. However, the reform of rural taxes transfer payment does not have theregional equalization effect, the policy effect is the largest in the eastern region, thenthe second in middle region, and the last in western region. This shows that althoughthe reform of rural taxes transfer payment and the abolition of agricultural tariffsitself could help reduce the differences between town and country, failed to reduceregional income disparity among rural residents.