A Study On The Coordination Of Macro Tax Burden And Economic Growth In Zhejiang Province

The relationship between the macro tax burden and economic growth has draw attention from both academic and social. The situation that Chinese government fiscal revenue growth is far more than GDP growth has continued for many years.This situation triggered a heated debate. This paper analysed the relationship between fiscal revenue and economic growth theoretically and empirically,and constructed the relational model of macro tax burden and economic growth using the data of 11 cities in Zhejiang province.The first part introduces the background, significance of this paper, review of relevant literature, ideas fo researching, frameworks,innovation and shortcomings.The second part analyzes the macro tax burden and economic growth theoretically. The first section defines the scope of government revenue, fiscal revenue, the meaning of tax burden, the definition of metrics of macro tax burden and the calculation method of macro tax burden. Section II describes the basic theory of the relationship between macro tax burden and economic growth, including tax theory, the crowding-out effect of government investment, Laffer curve. Section III analyzes the impact of macro tax burden on economic growth.The third part analyzes the status of macro tax burden and economic growth in Zhejiang, including the status of economic growth and fiscal revenue, the status of macro tax burden, and analysis of the trends and relevance of macro tax burden and economic growth.The fourth part analyzes the relationship between macro tax burden and economic growth empirically, including path analysis of revenue and economic growth in Zhejiang, and the construction of model of the relationship between macro tax burden and economic growth based Barrow.We estimate the optimal tax burden level, and refer to the international situation provided by the world bank.Finally we conclude that the macro tax burden level in Zhejiang province has reached the optimal tax burden interval,and improveing macro tax burden will be not conducive to sustained economic growth.The fifth part puts forward two conclusions and three policy recommendations.The conclusions : to promote the economic development of Zhejiang province and coordinate the relationship of fiscal revenue and economic growth must pay more attention to consumer demand factors;the macro tax burden level in Zhejiang province is close to the optimal tax burden interval and optimal taxes are different from region to region.Three policy recommendations are as follows.The first recommendation is to continue to promote full aperture budget management nationwidely,and the local government need to constraint sector’s interests to strengthen the ability of macro-control and resource allocation.The next suggestion is that Zhejiang Province needs to grasp the laws of the market and to seize growth in consumer demand; regulate financial revenue and expenditure structure to exert a positive effect of macro tax burden,in order to establish a stable revenue structure and healthy economic growth model.The third recommendation is that Zhejiang Province should pay more attention to macro tax burden level with long-term vision,and simultaneously play industrial characteristics and regional characteristics to implement better policy on local conditions reasonably.