Research On Legal Issues Of Incorporating Tax Expenditures Into Budget

China’s tax incentives have been criticized due to the phenomenon of "overuse" and "chaos".Tax expenditures are the fiscal manifestations of tax incentives.Incorporating tax expenditures into budget is conducive to giving full play to the incentive and guarantee functions of tax expenditures,and effectively restrain the negative effects of tax expenditures,thereby regulating the implementation of tax incentives and assisting the formulation of tax incentives,which is an effective way to supervise tax incentives.Incorporating tax expenditures into budget means that the budget legal system should be used to regulate tax expenditures.Therefore,the budget legal system must meet the needs of regulating tax expenditures budget management.Referring to relevant experience at home and abroad,incorporating tax expenditures into budget should firstly connect the budget system and the tax system to distribute power;choose the legislative method of incorporating tax expenditures into budget,follow the principle of relative reservation of laws,and properly ensure the central legislative status and appropriately endow local legislative powers of tax expenditures budget.Secondly,incorporating tax expenditures into budget should determine the scope of tax expenditures budget preparation by enumerating the tax categories involved in tax incentives,and define the benchmark tax system for relevant tax categories;choose to report tax expenditures as part of the budget as the premise of preparation,and assign the power of tax expenditures budget preparation to the administrative agency;collect and summarize bottom-up tax expenditures information,and then compile it into specific budget items;reduce budget restrictions of tax expenditures through the design of the budget balance system;restrict tax expenditures decisions and adjustments through the approval procedure of people’s congress at all levels.Last but not least,different types of tax expenditures should be set up with different evaluation standards;the whole process of tax expenditures decision-making should be tracked and feedback;a multiple system should be established for the people’s congress,party and government agencies and social to supervise tax expenditures budget.These suggestions can,to a certain extent,solve the legal problems in aspects of the legislative system,management system,preparation,decision,adjustment,performance evaluation and supervision of incorporating tax expenditures into budget,and remove obstacles for incorporating tax expenditures into budget.