Volume 3, Issue 5, September 2018, Page: 53-59
Empirical Analysis and Countermeasures of Interprovincial Tax Transfer in China
Junjun Zhang, The School of Finance and Taxation, Central University of Finance and Economics, Beijing, P.R. China; Institute of Fiscal Science, Department of Finance, Guangxi Zhuang Autonomous Region, P.R. China
Ke Gao, “The Belt and Road” Economic Development Research Center, Shandong University of Finance and Economics, Jinan, P. R. China; Development Research Center of Shandong, Jinan, P. R. China
Received: Nov. 7, 2018;       Published: Nov. 8, 2018
DOI: 10.11648/j.ajmse.20180305.13      View  84      Downloads  6
The reform of the Tax-sharing System in China only regulates the vertical tax distribution relationship between the central government and the local government, but the horizontal tax distribution contradiction between the local governments is increasingly prominent. This paper takes China as an example, using data and empirical models, combined with theoretical analysis, discusses the problems of tax transfer and tax coordination among different regions in a country, which is essentially the problem of the deviation from tax and tax sources. This paper calculates the degree of deviation between regional tax and tax sources by the method of proportion difference, and makes an empirical analysis of the factors affecting tax transfer, including market size, labor cost, trade cost, urbanization level, degree of opening. It explains the phenomena, causes, impacts and harm on economic development of tax transfer among regions in China. Those impacts include: increasing regional disparities and hindering regional coordinated development, widening the gap in public services between regions, stimulating the irrational investment behavior and scale expansion of local governments, distorting economic indicators is not conducive to scientific decision-making, deteriorating the natural environment of the resource-providing place, influencing the construction of the harmonious society. Then make the suggestion that the macro level top-level design plan and policy should be adopted at the national level: improve the tax distribution system for horizontal transfer payments, improve the vertical financial transfer payment distribution system, reform the tax system appropriately according to the principle that the tax is consistent with the tax source, improve the tax collection and management system, improve the management of corporate consolidated tax payment, promote the reform of the price mechanism of resource elements and solving the problem of the resource pricing distortion, reform the performance evaluation indicators of local governments to prevent vicious tax competition, replace regional tax incentives with industrial tax incentives.
Tax Transfer, Tax Deviation, Empirical Analysis
To cite this article
Junjun Zhang, Ke Gao, Empirical Analysis and Countermeasures of Interprovincial Tax Transfer in China, American Journal of Management Science and Engineering. Vol. 3, No. 5, 2018, pp. 53-59. doi: 10.11648/j.ajmse.20180305.13
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