A Study On The Effect Of Local Government Governance On The Macro Tax Burden Of China

China's macro tax burden has been an increase since 1995.In recent years,under the influence of economic depression and the global competition for tax cuts,it is imperative to reduce the macro tax burden reasonably.In order to find a reasonable way to reduce the macro tax burden and maintain the stable development of regional economy,this paper focus on the level of the governance of local government influence on macro tax burden from two aspects of theory and practice.This paper divides the local government governance into two parts.One is the local government efficiency,and the other is the standardization of local government power execution.In theory,based on the relevant theories of macro tax burden and government governance,this paper draws the mechanism of two aspects which reflect the influence of local government governance on the regional macro tax burden,and put forward the theoretical hypothesis.Next is the empirical research.By using relevant data from 2004 to2015,31 provinces,autonomous regions and municipalities,this paper construct the fixed effect model for empirical test.After theoretical and empirical analysis,the paper concludes that:(1)the improvement of local government efficiency can significantly reduce the macro tax burden in the medium and small caliber areas;(2)the improvement of the standardization of local government power execution can significantly reduce the macro tax burden in the medium and small caliber areas.In conclusion,the level of local government governance has a significant impact on the regional macro tax burden.The improvement of local government governance plays an important role in reducing regional macro tax burden.In addition,the robustness test is also carried out to test the macro tax burden after considering the GDP error.The result is still high local government governance level,which plays a certain role in reducing the regional macro tax burden.From this,the relevant policy recommendations are put forward to improve the level of local government governance in order to promote the reasonable decline of the macro tax burden in China.