Financial Pressure And Tax Effort

The reform of the tax sharing system has reestablished the relationship between the central government and the local government,initially established the local financial status,and become an important engine for the rapid growth of the second half of China's economic reform and opening up through effective competition between local governments.However,the follow-up reform of the tax sharing system is not enough.There are problems such as the quality of local financial growth is decreasing year by year,and the regional differentiation of local finance is emerging year by year.On the one hand,it is difficult for local governments to guarantee high-quality tax revenue under the domestic environment of downward economic pressure,urgent debt crisis of local governments and 200 million yuan tax reduction and fee reduction;on the other hand,local governments have more and more rigid expenditures,and they need to increase financial expenditures to cope with the aging population and "make up for shortcomings".Therefore,local governments have a spear of fiscal revenue and expenditure The shield is sharpening.This paper takes this opportunity to study the influence mechanism of fiscal pressure on the level of tax effort under the background of fiscal decentralization system and the strategic behavior of local governmentsFirst of all,in the previous literature research,the existing research on the tax effort is more focused on the measurement level,more on the discussion of the local government's dependence on transfer payment,reducing the level of its tax effort,and insufficient research on the incentive mechanism to enhance the local government's tax effort.Based on the incentive mechanism of local government,this paper studies whether the regional differentiation of local finance is the incentive factor of local government's tax effortsThen,this paper analyzes the current financial pressure faced by local governments in China,and finds that the central region faces the largest financial pressure,followed by the western region,and finally the eastern region.This paper believes that the economic differentiation aggravates the financial situation differentiation of local governments.At the same time,this paper uses "tax handle method" to measure the tax effort of local governments in China,and finds that the western region has the highest level of tax effort,followed by the eastern region,and finally the central region.Through comparison,it can be found that the central region has not been able to transform the transfer payment funds into its own endogenous growth momentum,but has increased its dependence on the transfer payment funds ComparisonsOn the basis of the previous part of the study,this paper,based on the data of 2008-2018 at the provincial level,takes the stock fiscal pressure and incremental fiscal pressure as the measurement indicators of fiscal pressure and tax effort,and examines the impact of fiscal pressure faced by local governments on tax effort.It is found that the stock fiscal pressure has a significant positive effect on the overall tax efforts of tax departments,and the increase of fiscal pressure will improve the tax efforts of tax departments.In addition,it also confirms the restraining effect of transfer payment system on the level of tax effort,that is,the more "blood transfusions the more areas get,the worse their own "hematopoietic abilityThen,a series of conclusions are drawn.First,the higher the level of economic development is,the lower the level of tax effort.Because it is easier for regions with better economic development level to obtain tax revenue than those with less developed economy,there will also be a phenomenon of relaxing the level of tax effort,which is called "tax effort paradox".Second,from the perspective of different regions,fiscal pressure has a significant impact on the level of tax effort in the eastern and western regions.Only the central region's fiscal pressure has not passed the significance test.The factors that affect the level of tax effort are only the industrial structure and transfer payment,that is,the gap of fiscal revenue and expenditure in the central region mainly depends on transfer payment funds and the awareness of self balancing budget Relatively weakBased on the study of provincial tax efforts and financial pressure,this paper puts forward a series of countermeasures and suggestions,such as maintaining the level of rationalization of tax efforts,including the level of tax efforts into the consideration of transfer payments,optimizing the industrial structure in order to realize the virtuous cycle of "accelerating the development of enterprises,conserving local tax sources and driving tax growth".It provides policy enlightenment for the relief of local financial pressure and the reform of intergovernmental transfer payment system,and provides empirical evidence for the current reform of the local tax collection and management system.