Research On Tax Policy To Promote The Development Of Circular Economy

After a long period of extensive economic model,there has emerged terrible situ ation such as environmental pollution,lack of resources,climate warming,haze and o ther issues in china.In order to solve this problem,we must pay attention to environm ental problems and develop circular economy.Circular economy mainly embodies the concept of sustainable development,considering three aspects called ‘Reduction,Reu se,Resource'.The development of circular economy can improve the environment,pr otection of resources and lead the green travel,green economy in the whole society.In the process of developing circular economy,we need not only self-adjustment functio n of the market,but also corresponding tax policy established by the government.Tax policy has great regulation on the protection of the environment.Thus,it can be used t o prevent the occurrence of environmental pollution.Environmental tax can greatly pr omote the development of circular economy in China.In the ‘12th Five-Year plan',C hina has set the development of circular economy as the goal.In order to achieve a bet ter development of circular economy,reasonable tax policy should be developed,whi ch can protect the environment and keep the development of the economy.We have cl early put the economic development and ecological environmental protection on the a genda,and put forward the environmental tax bill on "13th Five-Year" plan.It can see that China have put the environmental protection and economic growth as the focus o f national development.At this stage,there is no perfect tax policy to promote the co mprehensive and coordinated development of the economy.This requires us to consta ntly explore,summarize the experience and to perfect the tax system combining the ac tual conditions of our country.In this paper,we assume the environment and resources have been seriously dam aged.And the development mode of economy should set the circular economy on prin ciple position,which based on the tax policy.First,we should express the structure an d development mode of circular economy from the view of the basic concept and con notation and analyze the theoretical support of tax policy on the development of circul ar economy.Secondly,this paper describes the current situation of China's tax policy on the development of circular economy.It affirms the advantages of China's tax polic y and expounds the preferential tax policy.We also aware that there some problems ar e existing in the tax policy on the way in developing circular economy.Additionally,we use "Kuznets" model to analyze the impact of various taxes on environmental pollution based on the data from 2007 to 2014.In this process,we set the value-added tax,consumption tax and corporate income tax as independent variables,and waste indust rial wastewater,environmental factors,solid waste acted as the dependent variables.F inally,we use game theory to optimize the tax policy,and put forward some suggestio ns to improve the tax policy and set new taxes.