Research On The Influence Of Direct Tax On The Governance Ability Of Local Government

As a crucial part of the modern fiscal and taxation systems,direct tax plays an effect role in local government governance.Direct tax is the important contents of deepening tax system reform in China,and it is a crucial method to facilitate the enrichment of local government governance ability.This thesis concentrate on the impressions of direct tax on local government governance.Firstly,it expounds the core content of local government governance from the theoretical level.Secondly,it examines the concrete impress of direct tax on local government governance from the personal point of view,firms and society.Thirdly,it compares and analyzes the changes of the number of taxes,income scale and regional distribution contained in China’s direct tax,Finally,build an index system of local government governance capacity,measure the local government governance capacity of 30 provinces in China from 2013 to 2019,and built the panel data model,empirically investigate the impact of direct tax on local government governance capacity from the regional level,and puts forward relevant policy suggestions.The results of analysis indicate that: firstly,the scale of direct tax revenue in China is increasing,and the proportion is elevating with each passing year,from2002 to 2021,the proportion of direct tax increased from 26.3% to 46.7%.The scale of income tax and property tax income also shows an upward trend,the proportion of income tax in various regions shows a polarization trend,and the gap between the proportion of property tax is small.Secondly,from the calculation results of local government governance index,it shows an overall growth trend,the difference between areas is distinct,and the eastern region is much higher than the central and western regions,and the difference is not obvious in the central and western regions.Finally,from the empirical results,increasing the proportion of direct tax can significantly promote the improvement of local government governance ability,urbanization rate and the relationship between government and market also have a positive role,while fiscal transfer payment significantly inhibits the improvement of local government governance ability.The income tax in the direct tax plays an effect role and has a crucial positive correlation with the governance ability of local governments.Among them,both enterprise income tax and individual income tax have a significant positive promoting effect,and the promoting effect of individual income tax is more obvious,so,we should increase the proportion of direct tax step by step;Improve the efficiency of tax collection and management;In line with the goal of national governance,we will elevate the governance capacity of local governments.