The Research On Main Body In Local Tax Selection

In 1994 our country began to implement the fiscal and taxation system reform, in accordance with the tax dividing the central tax and local taxes, preliminarily constructed local taxes system conforming to the economic development, which providing the guarantee on the money for the local government to perform the public function. But the current system focuses on the central tax and the central and local shared tax reform, insufficient consideration of local tax system construction, which leads to local financial difficulties, local government have to depend on the transfer payment system. With the business tax changing to added-value tax gradually, the main body tax of local taxes is lack, the local government revenue cannot meet the needs of the spending, so we need to choose and foster the main body tax in local taxes as soon as possible.The correct theory promote the development of practice, and grasp the construction of main tax in local taxes in theory can improve the understanding of the local main tax. In the study of connotation and basic characteristics on the local taxes and the main tax, we analyzed the necessity of local taxes existence and the importance of main tax selection, main tax is important funding of local governments providing public goods, fulfilling government functions and developing local economy.Adhere to the theory with practice has a guiding significance to reality, so analyzed the historical evolution on our local taxes system and the main tax can find that the problem of our local taxes system is lack of main tax, the reasons include: fist of all, the tax right division tends to central government; Secondly, tax division is not scientific; Thirdly the base of the main taxes is not stable in the evolution of tax system.In the further study of the main tax selection of the United States, Britain, Japan and Indonesia, we can sum up the experience for the main body tax choice: firstly, the various countries’ current financial management systems affect the selection of main tax; secondly, many countries choice the tax which has a stable source of income as the main local tax; thirdly, countries choose the tax which is easy for local government management as the main local tax; lastly, the property tax has an important role in local tax system.Under the guidance of the theory and international experience, we give the advices actually on choose the main tax in local taxes: firstly, before choosing the main tax, we should divide central and local tax rationally, divide local taxes scientifically. Secondly, build the property tax as the main local tax. Reform real estate tax and vehicle tax, impose inheritance tax and gift tax.