Research On The Influence Of The Reform Of County Directly Administrating By The Province On The Taxation Efforts Of Grass-roots Government

Since the central government clearly put forward the deployment requirements,and then each province has successively implemented the city administrating the county reform pilot work according to the local situation.Under the mode of tax sharing system,the financial power is shifted up and the responsibility of administrative power and expenditure is shifted down,which makes the financial capacity of governments unbalanced.As a means to balance the financial capacity of governments at all levels,transfer payment has been implemented for a long time in our country.However,in the five level government mode,the city like "city exploiting county" has serious problems in the interception of the financial funds of the county-level governments,and the financial resources of the county-level grass-roots governments are serious In a state of tension.As one of the solutions to this phenomenon,the current direct management model mainly includes three modes:power expansion of strong counties,power expansion of counties,and county finance administrated by the province.In January 2010,Hunan Province began to implement the reform of "county finance administrated by the province" in a large scale.Under the tight financial situation of Hunan Province,how hard the provincial government tries to tax efforts the county-level governments is the focus of this paper.In this paper,first of all,through combing the previous scholars’ research on the county directly administrating by the province,and the relevant theories of county directly administrating by the province and tax efforts as the research basis;secondly,in the reform,the provincial government finance directly connects with the county finance,and the provincial and county governments implement the fiscal division,on the one hand,part of the tax revenue sharing,on the other hand,transfer payment,the article selects transfer payment as the intermediary variable to study directly administered counties Third,for the calculation of the degree of tax effort,we choose the Stochastic Frontier Analysis(SFA)and divide Hunan Province into three parts:North Hunan,South Hunan and West Hunan.It is found that the better the economic level is,the lower the average tax effort is.As a quasi-natural experiment,this paper selects the time span 11 years to study the reform effect,and uses the mainstream dual difference model for empirical research.We can draw the same conclusion that the reform of Hunan province reduces the degree of tax effort of each county,and the intermediary effect proves the feasibility of each county’s increasing dependence on transfer payment to reduce the degree of tax effort.Finally,this paper puts forward feasible policy suggestions based on the analysis of the problems existing in the reform of Hunan Province’s directly administered counties and empirical analysis.