Study On China’s Macro Tax Burden Based On Endogenous Growth Model

China’s economic growth has made remarkable achievements since the reform and opening up. The GDP annual growth has been reached nearly10%and this rare sustained high growth is called "Chinese miracle". But with this, our tax revenues have also shown extraordinary growth over the past decade, which attracted the attention of the community. And the scholars have been engaged in a fierce debate on whether tax should be cut.Tax burden is the core issue of tax policy and system, it affects the national macro-control and the ability to concentrate financial resources on the one hand, and on the other hand, it affects the affordability of homes and companies and then affects the economic development ultimately. The level of tax burden has always been a sensitive issue. A reasonable tax policy is conducive to promoting the healthy development of economic and creating a favorable external macroeconomic environment for China. However, without appropriate tax policy will result in difficult economic operation, reduce the efficiency of social economic resource allocation and increase the risk of social economic operation.This article went along the logical thinking of theoretical analysis, empirical analysis and policy recommendations, and analyzed China’s macro tax burden from multi-level and multi-perspective. This paper can be roughly divided into the following sections:the first part is the introduction of the article including the research background, research significance, research ideas, research methods etc. The second part is a literature review and the theoretical support section including the research status of macro tax burden and economic growth research areas and the theories of macro tax burden and economic growth which prepared for the follow-up study; The third part studied China’s macro tax burden, analyzed the growth of China’s tax revenue and its relationship with economic growth since1994and measured the level of China’s macro tax burden. Based on which, the paper made a comprehensive and objective evaluation on the problem of China’s macro tax burden and draw the conclusion of our high overall tax burden; The fourth part is the further expansion research, studied China’s tax structure based on the previous article discussed, analyzed the effect of tax structure on the economic growth through combining research methods of building model and empirical analysis and studied the effect of other tax-related factors such as investment, innovation and market level on economic as well as the impact of tax structure on China’s urban-rural income gap. This part found that China’s current labor income tax reduces economic growth and widen the income gap between urban and rural areas, capital income tax reduces economic growth but is conducive to narrowing the income gap between urban and rural areas and consumer expenditure tax promotes economic growth, but is not conducive to the balance of income gap; The fifth part is the research finding and policy recommendation section, it gave the conclusions of the study and put forward some scientific inferences and policy recommendations.