The Study Of The Effect Of China’s System Of Local Finance

We found that, in the world economy developed countries, due to the wide recognition of the theory of fiscal decentralization, tax distribution system has become very popular. Almost all the developed countries have adopted the system of tax distribution, although each country according to their national conditions, to levy taxes, the tax rate and the share proportion of governments at all levels make different provisions. The study found that, the tax system does have a role in promoting economic development, but also improve the central fiscal revenue accounted for the proportion of gross national income by taking advantages of the country, strong play to ensure the stability and unity of the country, and through the transfer payment, to plays an important role in promoting the development of the backward areas.In 1994, China implemented the tax sharing system. Aiming at the shortcomings of the tax system is in 1987 the implementation of the fiscal responsibility system and implementation. The tax system is not only the tax, tax, local tax, and the share ratio of division tax problems, more important is the manifestation of the division of the central and local property rights and powers on, this is an important point. The relationship between the rights and obligations clear at all levels of government to stimulate the consciousness of responsibility, in order to make the national development is to impact on the development and explosive force. From China’s 20 years of development of the tax system can clearly see the current development situation, the total amount of the economy of our country has already exceeded Japan, become the world’s second largest economy, the results were very proud. Can say, the development of the reform and opening up thirty years of China achievement is nearly two hundred years the west can make the tax system, in which the effect is quite obvious, a great role.But we have to admit that, since the 90’s Chinese limit factors in the rule of law and system construction and so on, the tax sharing system in China has a natural shortage at the beginning of the establishment, these problems have drawbacks, along with the economic development of these years, more obvious and to get rid of them, otherwise, it will seriously effect of Chinese especially local government economic development. Because the provisions of China’s implementation of the 94 years of tax sharing system between central and local government powers are not detailed enough, right hand between layers, layers of decentralization of local government, especially the local government of the county level financial autonomy is smallest, but to assume the heavy administrative affairs management right. The excessive concentration of financial rights, powers of indwelling local economy is extremely unfavorable.This paper from a county level local government perspective to analyze the impact of the tax system of local fiscal changes, and finally from the local financial rights allocation, the local tax system and tax structure optimization, local tax collection and administration and the local taxation offices set up point of view, are given to perfect China’s tax sharing system countermeasures of increasing, local government tax revenue.