Tax And Fee Structure Change And Local Government Governance

The scientific and rational tax expense structure is not only the key to ensuring the high-quality development of our country fiscal tax system,but it is also the foundation and important pillar of promoting the modernization of the state management and management capabilities.The plurality of tax reforms carried out in 1994 formed a system of fiscal decentralization with Chinese characteristics and greatly strengthened the macro-coordination of the central government.At the same time,however,the financial and clerical powers of the local government became asymmetrical,creating a void in the balance of funds and creating an impulse to expand the size of local fiscal revenues.The legislative level is not high,and the revenue from insufficient fees for supervision has become a realistic choice for local governments to supplement their financial resources.The composition of China’s public finance income includes tax revenue and non-taxable income,the tax structure for the sound and long-term development of financial income is important,the Chinese public finances of non-taxable tax revenue have changed significantly in recent years,and the tax reform will be all out-of-budget funds for the management of tax-free tax revenue,and at the same time,in recent years,China’s large-scale tax cuts and fee reductions have been implemented,so that the tax policy is frequently changed.As China’s economy enters the stage of quality development,aspects of economic,political,social and other issues are increasingly showing the characteristics of diversity and complexity,and the continuous renewal of government responsibilities and functions,the Progressive development of China’s social structure,and the strengthening of social forces continue to put forward new requirements for local government governance.Therefore,it is necessary to explore the mechanism between changes in tax structure and local government governance.Firstly,the paper theoretically explains the impact mechanism of changes in tax and fee structure on local government capacity.Secondly,from 2009 to 2017,a comprehensive indicator system was formulated to measure the capacity differences of local authorities in29 provinces and cities in my country except Tibet,Inner Mongolia,Hong Kong,Macao and Taiwan.Thirdly,empirical research on the impact of changes in the tax and fee structure on the governance capacity of local governments at the national and subregional levels is being carried out to establish fixed impact models and variance analysis.On the one hand,increasing the ratio will significantly improve tax revenue and local government management capacity;on the other hand,although the freight capacity in the whole country or the central and western regions is negatively correlated with the local government management capacity,it is positively correlated in the eastern region.Then,after changing the key variables described by the reliability test,the conclusions of this study remain valid.Finally,qualitative and quantitative analysis are carried out,and appropriate suggestions are put forward to improve my country’s tax and fee structure and local government management level,so that tax and fee policies can better promote high-quality development.