Perfecting Local Tax System In Henan Province Under The Background Of The VAT Replace Bussiness Tax

After the 1994 tax reform, the steady growth of local tax revenue on cost-effective way to protect the sustainable development of various undertakings, however, focused on the division of the tax system reform central tax authority, ignoring the local tax system. In 2011, the birth of " The VAT replace Bussiness tax " opened a beginning of a new round of tax reform. After the VAT reform carried out in the process, both in terms of national agencies, or the declaration of tax payments from the taxpayer, they have revealed many new problems to be solved, such as: the tax base is too narrow, national and local tax revenue distribution imbalance, collection imperfect way, these problems are not solved in time, it will hinder the promotion of the new VAT system and implementation of local tax will hinder the construction and improvement. In " The VAT replace Bussiness tax " big environmental background, to solve the contradiction between the central and local taxes, improve and perfect the local tax system, to promote the smooth operation of the local fiscal revenue and expenditure. Chinese Communist Party held the big meeting,require reforming and perfecting the Local Tax System requirements, in the context of the government tax reform, research Main Local Taxes selection, optimizing local tax system is very important.This article will document information access and real work combining the status based on the current provinces to carry out the local tax system reform work, finishing in the United States, Japan and the setting of local tax system, select Henan local taxes as a research object, "The VAT replace Bussiness tax" Background Variation of Henan tax system to do a panoramic description for the reader to understand the tax system reform Henan provided information. This paper is divided into five parts: The first part defined the research background, significance and research methods. The second part explains the basic theory of Main Local Taxes choice, defines the concept of local taxes, defined the content and features of factors and choice of main taxes of Main Local Taxes. The third part analyzes the camp changed to increase the impact on Main Local Taxes choice. First introduced in front of the camp changed to increase local taxes run before, including local taxes tax structure, permissions and so collection and analyzes the status of the sales tax on local tax system. Then a detailed analysis of how the camp changed to increase sales tax to shake dominant position, and the resulting impact on local tax revenue, increasing the risk of the consequences of local government finances. To understand the urgent need to reconstruct the local tax system at this stage, Henan and even choose our Main Local Taxes necessity and urgency. In the fourth part, the analysis of the text of the theory and reality of Main Local Taxes selection carried out, and foreign selection experience summary, based on the former, I believe that to be of Main Local Taxes opt-in system level first of all should be simplified government level, a clear government powers at all levels, appropriate to empower local government in certain tax legislative power on the basis of rational division of powers. In the specific selection strategy, based on the gap between the level of economic development and endowments of resources in Henan, offered to property tax as the main tax target local taxes. And explain the theoretical and practical foundation. Then property tax reform with the main tax optimization goal put forward specific policy recommendations, provide a reference Henan and the country Main Local Taxes selection.This article through to the reform experience of the local tax system in our country, combining with the local tax system construction at home and abroad under the background of experience and to “The VAT replace Bussiness tax” future prospects analysis of local tax system, choose for “The VAT replace Bussiness tax” under the background of Henan local theme taxes, reference, put forward by the local tax system at the same time, the local tax system reform to provide case reference for other provinces and cities, for the optimization of Henan province local tax system and improve the local tax structure in our country is of great significance.