Study On The Influence Of "BT Changes To VAT" On The Local Government's "Land Finance" Dependence

China implements the land system of socialist public ownership.The government has make decisions on acquisition and compensation in the process of land acquisition,which has an absolute dominant position and unlimited collective land acquisition rights.In addition,government officials are under the background of the core performance evaluation which is focus on economic development.The local governments which has limited rational will generate income relying on land transfer under the soft constraints of collective land acquisition rights over and over again and funally realize the dependence of "land finance"based on the characteristics which revenue is greater than cost.It is closely linked to the fiscal and taxation system,and the "BT changes to VAT" as another breakthrough point after the reform of the tax-sharing system will inevitably lead to changes in the behavior of local governments.The local government will prefer searching incone than cuting back financial expenditure considering public satisfaction and self-interest.Whether the "land finance"income will become the first choice for the local governments to maximize its own interests and ease the financial pressure,that is,whether it will increase the dependence of "land finance" for a long time?This paper based on the growing background of "BT changes to VAT"and the"land finance"of local governments and studies the impact of "BT changes to VAT" on the dependence of local government's "land finance" based on the logic of local governments behaviors.We found by the realistic analysis and the matching of the double differential propensity scores that the "BT changes to VAT",will significantly urge local governments to focus on "land finance" in the early stage and deepen the local government's dependence on"land finance".But if we can ensure other measures such as full-caliber budget management,land equivalent to the market and strict implementation of the same price,the impact of "BT changes to VAT" on the dependence of local governments on "land finance" is declining.At the same time,this article is used to norm behaviors of local government and to propose policy recommendations and opinions which revise the local governme's "land finance" dependence situation.The innovation of this paper is to expand the extension of "BT changes to VAT" to "land finance" and to analyze the situation and reasons of the change of local government "land finance" dependence after "BT changes to VAT";use better model,double differential propensity score matching,to test the impact of "BT changes to VAT" on local government"land finance".