The Optimization Of Environmental Protection Tax And The Government Compensation

With the rapid development of China's economy,environmental damage is becoming more and more serious.In order to coordinate the relationship between environmental protection,economic development and social progress,environmental regulation policy has gradually become a focus of attention.Tax policy,as an important tool and means for the government to regulate social and economic life,plays an increasingly important role in protecting the environment.With the adoption of the Environmental Protection Tax Law on December 25,2016,the Levy of environmental protection tax on January 1,2018 have brought it more attention.The combination of environmental tax and its supporting policies has a certain impact on environmental quality,economic growth and social welfare.On the one hand,it can limit pollution emissions and guide environmental governance;on the other hand,if the tax system design does not conform to the reality of our country and the supporting policies are not perfect,it will also have adverse effects on economic growth and output level in the short term.According to the theory of Environmental Kuznets Curve,when the economic development reaches a certain level,the degree of environmental pollution will gradually decrease,and excessive reaction will affect the economy;the lack of environmental protection tax in the early stage of levy may lead to the unsatisfactory effect of reducing pollution and promoting environmental protection.Therefore,we should pay attention to the combination with the government compensation mechanism in order to reduce the possible economic losses caused by the collection of environmental protection tax.Moreover,in the long-term dynamic process,the implementation of government compensation policy matched with environmental protection tax is easier to realize the multiple dividends of reducing environmental pollution,promoting economic growth and maximizing social welfare.In order to study the optimization of environmental protection tax and its policy combination with government compensation mechanism,discuss the perfection degree of current environmental protection tax and government compensation policy,and analyze the importance of supporting policies related to environmental protection tax.Based on the study of environmental protection tax and government compensation mechanism at home and abroad,this paper establishes relevant models of environmental protection tax and government compensation mechanism,analyzes the effectiveness of the current environmental protection tax and government compensation in China.Firstly,based on the related externality theory,environmental tax dividend theory and compensation mechanism theory,this paper analyses the impact mechanism of environmental protection tax and government compensation on environmental quality,economic growth and social welfare,and analyzes the advantages of the combination of the two in theory.Then,according to the current situation of environmental protection tax in China,we find the shortcomings of environmental protection tax in terms of levy scope,tax rate and income use system.We also analyze the current situation of government compensation mechanism,understand its subsidy strength and supervision mechanism,so as to explore the relevant measures to improve environmental protection tax and government compensation system,and further reflect the necessity of combination of environmental protection tax and compensation mechanism.Secondly,it establishes the relevant theoretical model,uses the optimal control method to find the optimal solution on the balanced growth path,and uses MATLAP to simulate the policy after assigning the parameters according to the actual situation of our country,explores the rationality of the way and intensity of environmental protection tax and government compensation in our country,finds the optimal combination of environmental protection tax and government compensation mechanism,and models the impact of supporting measures of environmental protection tax.Finally,based on the empirical analysis,we draw the conclusion that the government compensation is insufficient and the restraint effect of environmental protection tax is unsatisfactory,and put forward relevant suggestions to improve tax system design,optimize compensation methods and pay attention to the dynamic combination of the two in the long run.