A Study On The Perfection Of The Local Tax System Of China

The local tax is an important part of the local government revenue,and plays an important role in serving local economic and social development,formulating regional allocation of resources and adjusting the income distribution to realize social fairness development.In 1994,The biggest tax sharing fiscal system reform was carried out by our country since its inception,the local tax system began to sprout.Twenty years since the reform,Every province has devoted its effort to adjust the financial management system,established a matching of the transfer payment system according to the central and local tax system pattern,basically ensuring the normal operation of the local governments at all levels and the development of the cause of the funds needed.However,the main purpose of the reform of the tax system was to solve the dilemma of the central finance,which strengthened the central revenue control ability,emphasized the central macro-control ability.After the reform,the central fiscal revenue especially tax revenues accounting for the proportion of the total fiscal revenue increased substantially.But the local resources ware gradually weakened,a series of outstanding problems ware existed.For example,the tax right was highly concentrated in the central,the scale of the local tax revenue was small and the property right did not match the duties and responsibilities.Under the halfway reform of the tax system,the income from the use right of state-owned land so-called "land finance" has gradually become a non-tax tool of the local government to make up for the financial gap.This short-sighted behavior by increasing the price and supply of lands for a one-time land transfer income to pursuit the fiscal revenue growth,may play a supplementary role in the short term,But with the excessive exploitation of land resources utilization,the disadvantages of land finance are becoming obvious,which results that the local government's financial security is difficult to continue.In addition,with "to replace business tax with value-added tax(VAT)" in the nationwide promotion,The business tax as the main local tax will be fully withdrawn from the historical stage,which will lead directly to the reduce of the local government tax revenues,and a local tax system without main tax.Therefore,the reconstruction and improvement of local tax system especially the main local tax' reconstruction has become an important content of the reform of finance and tax system.Therefore,this article firstly analyses the existing drawbacks of the system in our country,and finds series of problems of the local tax by way of longitudinal mode through the collection of national and HeNan province's actual data.Then by comparing the United States,India,Brazil and other federal countries and unitary countries such as Japan,France,the operation situation of local tax system,the reference is provided to local tax system construction of our country.Finally this article make an conclusion that specific implementation ideas must be made to deepen the reform of the fiscal and taxation system and improve our country's local tax system.Local tax system construction of our country should taken it into account that we should perfect our tax right division between the central government and local government,optimize the structure of local tax revenue,strengthen the construction of the main local tax and so on.Firstly,in order to clear the central and local tax right division,our country's various provisional regulations and management measures about tax at present stage must be optimized and upgraded to reach the height of the law and establish a series of perfect tax laws and regulations.Secondly,some proper tax revenue legislative right should be decentralized from the central,and the governments at the provincial level should be given corresponding tax administrative privileges.Optimizing the structure of local tax revenue and increasing the scale of local tax revenue is the financial guarantee of local governments to perform their functions and powers.In addition to strengthening the construction of the main local tax,local governments can put an end to the unreasonable charges,and eliminate the situation of cost instead of tax by taxation but not fees.Local governments also should shift some unreasonable tax mode and reverse the situation that more than one tax is be arranged at a system.Besides,appropriate increase of the share tax had better take place in proportion to make up for the local financial revenue and expenditure.Establishing the local main tax is the key of local tax system,especially the local tax system construction.The choice of our local main tax category in addition to following the general principles established,should not only draw on the international experiences of developed countries,but also consider China's current actual conditions.So,the ideal local main tax should reflect the sustained and steady growth of income function,At the same time,the ideal local main tax also should show the ability of adjusting income distribution as far as possible.Based on the research of the local tax system abroad and transverse comparison with domestic related tax,this paper argues that the property tax should be a choice for local main tax.setting up a system of local tax in which property tax is regarded as main tax is in accordance with the laws of the fiscal and taxation system reform in our country.In addition,the construction of local tax system should strengthen the improvement and management of local auxiliary taxes,exerting its function as the supplement of the local tax revenue.Finally,the construction and improvement of the local tax system also need to make some necessary supporting reforms from several aspects,such as establishing and improving the property assessment mechanism, and strengthening the monitor of tax source in our country,improving the citizens' tax consciousness and the efficiency of tax collection and administration,and reducing tax cost.