Research On Local Tax Construction From The Perspective Of Regional Financial Balance

Since the reform of the tax-sharing system in 1994,the scale of local tax revenue in China has been growing.For more than two decades,local taxation has played an indispensable role in safeguarding the functioning of local governments,promoting local economic development,and increasing local fiscal efficiency.The report of the 19 th National Congress of the Communist Party of China pointed out that it is necessary to speed up the establishment of a modern fiscal system and establish a central and local fiscal relationship with clear powers and responsibilities,coordinated financial resources,and regional balance.As the most important component of local fiscal revenue,local tax can directly increase the financial resources available to local governments and improve the public goods supply capacity of local governments.However,with the rapid development of the economy in recent years,the problem of unreasonable matching of local government financial power and power is becoming more and more serious.The differences in financial resources between regions are expanding day by day,the problem of equalization of basic public services is becoming more and more serious,the local revenue and expenditure deficit is serious,and local debt problems are hard to return.With the new round of reform of the fiscal and taxation system and the full implementation of the business tax reform VAT policy,this contradiction has become more and more serious.Undoubtedly,based on the balance of regional financial resources,it is very meaningful to speed up the construction and improvement of China's local tax protection.The content of this article can be divided into four parts.The first part includes the first chapter and the second chapter.The first chapter is the introduction,introduces the background and significance of the topic,and then briefly describes the research methods and shortcomings of this paper.The second chapter is a literature review,summarizing the relevant theories and research status at home and abroad.At present,the main research on local taxes mostly focuses on the necessity of local taxation and the choice of main tax types.The study on financial balance is more focused on the regional financial balance and some means to promote financial balance.The second part includes the third chapter.The third chapter is the basic theory of the balance between local tax and regional financial resources.This chapter defines the research scope of local tax and regional financial balance,and introduces their connotations and explains the basic theory in depth.The third part includes the fourth chapter and the fifth chapter.The fourth chapter is the analysis of the development status of local tax and regional financial balance.This chapter clarifies the development status of local tax and financial balance and possible problems,and then analyzes the relationship between local tax and financial balance.The fifth chapter is an empirical analysis of the impact of local taxes on regional financial balance.This paper firstly constructs a regression model based on relevant knowledge and existing literature data,and then collects data from 31 provinces and cities in the country for nearly ten years,conducts empirical analysis of data verification and model setting,and analyzes the causes based on the data results..The conclusion shows that the increase of the scale of local tax revenue can effectively reduce the scale of local expenditure and promote the balance of financial resources.At the same time,the income structure of local tax also has a great impact on the balance of financial resources.The fourth part includes the sixth chapter.The sixth chapter is the policy recommendations for improving local tax construction.Based on the previous data conclusions,this chapter is based on the perspective of financial balance,combined with the spiritual requirements of the 19 th National Congress,proposes to improve the local tax construction ideas in China,such as expanding the scale of local tax revenue,adjusting the local tax revenue structure,reducing the proportion of income from value-added tax,and increasing income from income tax.Specific proportions and other specific recommendations for cultivating new local tax main taxes.