Research On Intergovernmental Tax Competition

In China, decentralization began in the20th century, the early80s, gradually breaking the isolation between the country, the unity of the commodity market and factor market has taken shape, the relationship between the pattern of China under the planned system between central and local governments already loose. Compared with the centralized economy, interest-oriented local governments increasingly significant. The face of limited economic resources, the local government in the areas of financial and tax decisions, while other regions will inevitably focus on policy, regional game this non-cooperation, so that each area of competition for economic resources increasingly heated up. Moreover, the presence of China’s tax system reform and economic performance as the main assessment criteria official appraisal system defect, a common form of tax competition leads to diverse normative poor, the prevalence of local protectionism and redundant construction, and even competitive tournament style until vicious competition, seriously affected the healthy development of the local economy.Or on harmful tax competition beneficial long-standing dispute. Supporters argue that, under the conditions of free movement of factors of production, domestic local governments to take similar means of market competition to attract mobile factors of production operations, will help to improve the size, type and quality of the product or within the jurisdiction of the range of public services. Opponents argue that tax competition between governments will generate externalities, in order to attract businesses to invest and bring down tax rates, provide more favorable taxation system would lead to government is facing pressure on government revenue, reduce government provision of public goods and service levels, may also cause distorted industrial structure, regional and other inefficient allocation of resources, damage local welfare. On this basis, the paper first raised the following questions:In the context of China’s tax system, tax competition between local governments in the end of it exists or not? If there is, it is a competitive nature of what kind? Effects on China’s economic growth will make how?The article is based on research ideas to think on these issues is established, specifically, the text of the main contents are as follows:The first part is an introduction, a brief introduction to the background and significance of the study, and were reviewed research status; second part of the analysis of the real situation sort of tax competition among our provincial government, including the formation of the institutional context of tax competition analysis, induction means to compete, because the issue of tax competition at this stage and the problems caused by the formation; part III of empirical analysis of the spatial pattern of tax competition between national and provincial governments to describe the existence of tax competition testing; fourth Based on the analysis portion of tax competition on the path of economic growth, respectively, the reality across the country and sub-region of the empirical analysis; section V summarizes the main conclusions of this paper, combined with the stage of reform put forward specific policy recommendations.