The Mechanism And Effect Test Of The Tax Structure In Promoting The Coordinated Development Of Regional Economy

Since the reform and opening up for more than 40 years,China’s economy has changed from extensive growth to high-quality growth stage,relying on supply-side reform,although the total economic volume of the country has grown steadily,but the degree of economic development between different regions is different,and there is an economic gap that cannot be ignored.Among the four major regions based on economic division criteria,there are gaps in the eastern,central,western and northeastern regions due to regional characteristics,resource endowments,industrial structure and investment promotion,which makes the economic development between regions show a "Matthew effect",that is,the better the resource endowment,the more developed the economy,and the less regional advantages,the less developed the economy.And because the economic level is highly correlated with the resources possessed by the region,the economic gap between regions continues to widen,and there is even the possibility of talents,resources,investment,etc.tilted to a region,which is not only not conducive to the high-quality development of China’s overall economy,but also hinders the formation of a complete industrial structure in underdeveloped areas.Therefore,it is of obvious significance to study the level of coordinated regional economic development at the current stage,analyze its influencing factors and draw policy recommendations to promote the coordinated development of regional economy.In order to narrow the regional economic gap during the period of economic transition,China derived the strategic goal of coordinated regional economic development in the 90s of the 20th century.To achieve this macro-control goal,taxation is one of the main tools of the state to regulate and control the economy,and the tax structure is obviously of great significance to stabilizing economic growth.The tax structure refers to the basis of a country’s objective economic conditions and socio-economic development needs,and by combining different tax systems or taxes,it can comprehensively reflect the overall layout and internal structure of a country’s tax system,so as to better grasp the development direction of the tax system.Since the tax reform in 1994,after many adjustments and trials,a dual-subject tax structure with indirect taxes as the main body and direct taxes as the supplement has been formed,which can not only effectively regulate the economy,but also help to achieve social equity,ensure national fiscal revenue and promote sustainable economic development.However,with the rapid development of China’s economy,the overall economic aggregate situation is very good,but there is a gap in the degree of economic development between regions,which exposes the role of the current tax structure in regulating the regional economy,such as: lack of rationality of structure,relatively low proportion of direct taxes,indirect tax structure needs to be adjusted,incomplete industrial structure,collection implementation and supervision need to be strengthened.Therefore,it is urgent to innovate and improve the tax structure,coordinate the relationship between taxes,and appropriately adjust the current tax system to adapt to the new economic situation,so as to provide support for the coordinated development of the regional economy.With the goal of exploring the mechanism of tax structure on the level of coordinated regional economic development,this paper selects 31 provincial-level panel data from 2002 to 2021 to measure and analyze the regional coordinated development index by extreme entropy method,establishes a fixed effect model and threshold model from the dual perspectives of direct tax and indirect tax,and empirically analyzes and tests the influence mechanism of tax structure on the level of coordinated regional economic development.After the above measurement,empirical evidence and testing,the following conclusions are drawn:(1)on the whole,the level of coordinated development of China’s regional economy has shown a gradual upward development trend;The level of coordinated regional economic development was highest in the eastern region and the lowest in the central region,and the northeast region declined during the sample inspection period due to resource and industrial problems.(2)Direct taxes have a significant role in promoting the level of coordinated regional economic development,while indirect taxes have a significant inhibitory effect on the level of coordinated regional economic development.(3)The estimation results of the threshold model show that there is a single threshold value for both direct tax and indirect tax,and with the increase of the proportion of direct tax,after exceeding the threshold value of 0.383,its promotion effect on the level of coordinated development of regional economy gradually increases;with the increase of the proportion of indirect tax,after exceeding the threshold value of 0.640,its inhibitory effect on the level of coordinated development of regional economy is slightly weakened.(4)Among a series of control variables,the degree of foreign development,industrial structure and unemployment rate all had inhibitory effects on the level of coordinated regional economic development;Urbanization and government influence play a role in promoting the level of coordinated regional economic development.Based on theoretical analysis and empirical research conclusions,the following suggestions are put forward for the adjustment of China’s tax structure:(1)increase income tax revenue,increase the proportion of property tax,stimulate the vitality of emerging industry development,and expand the source of regional economic growth;(2)Optimize the structure of indirect taxes,strengthen the scientific nature of the tax system,and reduce the inhibitory effect of indirect taxes on the level of coordinated regional economic development;(3)Strengthen tax collection and management,improve the level of tax collection and management,establish a unified online tax collection system,simplify tax payment procedures,and reduce tax collection costs;(4)The tax system should be adapted to the economic development situation,and the preferential industrial tax policies should be combined with regional preferential tax policies to achieve the purpose of promoting the coordinated development level of the regional economy.