A Comparative Study Of The Macro Tax Burden Between China And The EU

As the core of the whole tax structure,the macro tax burden affects or even determines the setting and adjustment of the tax system and policies and is closely related to the economic development and social stability of the country.Therefore,the subject of scholars,officials and the community’s attention have always paid attention to the macro tax burden.At present,China’s tax revenue growth rate is much higher than the rate of economic growth.In the real economic life,taxpayers in our country,especially small and medium-sized enterprises,always feel that the tax burden is heavy and the efficiency of enterprises is constantly declining.More real entrepreneurs speak that "the tax burden of China is too heavy" and some corporates even divest from China.Internationally,the Trump tax cuts make a difference on China.However,at the same time,the domestic tax cuts have never stopped,such as comprehensive camp change、supply-side structural tax cuts and Some more detailed specific tax cuts.The simultaneous implementation of various policies and the intricate international environment have made it particularly difficult to judge the level of macro-tax burden in our country and determine the direction of the macro-tax burden adjustment in our country.The purpose of this paper is to provide reference for the adjustment of macro-tax burden in China through comparison of macro tax burden in China and EU countries by the establishment of appropriate comparison of macro tax burden.First of all,starting from the concept of macroscopic tax burden,this paper makes a clear reference to the relevant literature on the concept of macroscopic tax burden.According to the Western fiscal macro tax burden is "the tax burden of the overall tax situation,usually tax revenue as a share of gross national product or tax revenue expressed in the proportion of gross national product," the "tax" and "tax sources" correspond to adjust the connotation of "tax revenue" so that its tax sources are levied on "gross domestic product."Based on this idea,this paper constructs the concept of macro tax burden in this paper,the tax scale(excluding "property tax" or "wealth tax",and the "partial tax revenue" which is directly related to the national economic flow when there is a direct corresponding relationship with the national economic flow)and the ratio of GDP(or national income),also known as the macro tax burden.Secondly,in accordance with the principle of strict tax law,the principle of the national economy’s tax and fee,the principle of international comparison and the principle of total government revenue,the paper correspondingly establishes four dimensions of the macro-tax burden and obtains the internationally comparable macroscopic tax burden =(tax revenue-property tax)/ GDP.Then the paper compares the macro tax burden between China and the EU countries.And here comes the results: the macro tax burden rate in China during 2007-2015 has been below the average level in EU countries and the development trend is good.Comparing the tax structure between China and the EU countries,we can find that China’s indirect tax burden is higher than the EU countries and the direct tax burden is lower than the EU countries;the sum of income tax,goods and services tax and social security income in EU countries account for a high percentage of the entire tax revenue and form a tripartite confrontation,while China’s goods and services tax is significantly higher than income tax and social security income;in EU countries,the proportion of personal income tax is greater than the proportion of corporate income tax,while in China this situation is exactly the opposite.Thirdly,based on the principle of economic growth and the principle of reasonable burden of tax burden,we construct a time series model to analyze the impact of macro tax burden on economy growth in China by using the macro tax burden of F0,F1 and F2 established in this paper in order to evaluate China’s macro tax burden more accurately.Finally,according to the conclusion of this paper,it analyzes the causes of the persistent high tax burden in our country,including: the particularity of the tax structure in China,most of the tax in China is levied on the enterprise;the high "comprehensive tax Cost ";tax revenue is difficult to achieve earmarking,government agencies and business groups are too complicated trend,administrative costs are too high,the level of social security is low.Then the paper puts forward the following policy suggestions: reforming to direct tax as soon as possible,increasing the proportion of direct taxes;promoting personal income tax;cleaning up the fees thoroughly and promoting the fee-to-tax reform;regulating government funds and social security fund income;being guided by the rule of law,implementing the "tax law" principle.