Research On Construction Of Local Tax System In China During The Transition Period

Reform of the tax system in 1994 made our country show that the financial rights moved up and the responsibilities moved down,inducing the mismatch of the the responsibilities and the financial rights.At the same time,the main local tax losses and the revenue is short in the background of "Business Tax Replace with VAT"."The New Normal" is proposed by The Third Plenary Session of the Eighteen,requiring economic growth from high-speed to mid-high speed.In the face of the economic transformation,the current local tax system has been unable to meet the new needs of economic development,so the reform of local tax system is imperative.The reform of the local tax system can clear the responsibilities and the financial rights between the central and local governments,establish local main taxes,effectively make up the phenomenon that local financial income is not supported and promote the healthy and stable development of local economy.Article based on the theory of fiscal decentralization,game theory,and so on.Firstly,the article analyses Chinese economic characteristics during the period of transition,including that we should not develop the economy at the expense of the environment but pursue economy sustainable and healthy development.At the same time,we should increase the proportion of the tertiary industry,and stimulate consumer spending,making consumer spending become the main driver of economic growth.The existing problems.For example,the central and local financial powers don't match the tax right division,tax right division isn't reasonable,the main local tax losses,etc.At last,thought the contrast of four countries(United States,Japan,Germany,France),the paper puts forward proposals to reform the local tax system in our coupaper analyzes the current situation of Chinese local tax system and points out the ntry.Firstly,clear the central and local finance rights and responsibilities.Secondly,integration the property tax and make it as the main local tax.Thirdly,make the resource tax as an aid tax in the local tax system.Fourthly,from the perspective of protecting the environment,it is suggested that collect the environmental protection tax.Fifthly,the paper put forward the supporting measures to improve the local tax system.