Papers Category:Fiscal Levy Papers
- China Fiscal Policy
Post Time:2011/12/24 22:54:00
Write papers Net: [Paper Keywords] local tax authority sub-tax revenue management
[Abstract] an important foundation for the local tax system is the tax division of authority in public expenditure management system efficiency theory and the status of the government decision to the local tax division is necessary. China's tax privileges currently still prefer centralized on the main division of authority is unreasonable and we should take full account of the division of government functions and the nature of the tax itself, combined with local realities. A reasonable division of the provincial level and below the provincial level of tax administrative privileges. Scientific division of authority is the local tax administration to establish an important basis for improving the local tax.
The current division of authority from the tax administration requirements of the tax system completely there is a certain distance, which shows only the current tax administration authority over nature. Shall conform to the current deepening of China's economic reform and accession to the WTO to further economic integration with the international objective requirements of the existing local tax administration division of authority to innovate and reform.
A local tax based on the theory of division of management authority
Financial management system of local taxation as an important part, and the division of expenditure responsibilities between the government and the government has close ties between the sub-duty one hand. According to the Western theory of marginal utility and flexibility preference theory analysis. By the central provision of public goods will result in efficiency losses. Therefore, the provision of public goods must be multi-level nature of the other hand. Management system from the government point of view. Due to the efficiency of management and management constraints. Practiced around the world are multi-level system of government, local governments should provide public goods as the main body in order to more effectively meet the public needs the whole society. To reach or approach Pareto optimal state.
The level of public goods and services to the financial resources of the functions of the central government and local governments were allocated accordingly. It is necessary at all levels of government spending under the responsibility (powers) is divided between the Government at all levels of financial authority and the appropriate allocation of financial authority to local government general expenditure to meet the basic needs of tax as the main source of revenue. Naturally focused on the division of powers, manifested in the division of tax, namely the 'tax basis in the entire sub-Government implementation of decentralization from the central to local. The establishment of two sets of central and local taxation. And determine the appropriate levels of government authority, so that the right to tax the whole country between the central and local distribution. Establishment of local tax system is zoned to local governments for all the various fixed income taxes.
From the tax legislation, interpretation, storage and use tax collection and management to have a complete system. Including what taxes should be designated for the range of local taxes. Local government and local tax which should have administrative privileges, the local government to local tax laws and regulations with those requirements. The core of the system is the division of tax administration authority.
Second, our local tax status of the division of authority and management problems A local tax / Bu important question is whether local governments the right to determine the local tax base and tax rates and other tax factors.
That the tax authority. Will be the core of the tax legislative power management between the central and local rational division. Is an essential feature of the tax system. <<State Council on the implementation of the decision of the tax sharing system>> states: 'The central taxes, shared taxes and local taxes, the legislative power should be concentrated in the central', this provision constitutes our current central and local taxes legislative classification system framework. Currently enjoyed by our local government and the exercise of legislative power of taxation is as follows: First, the current urban maintenance and construction tax property tax, vehicle tax, urban land use tax and other tax regulations provide that. Provincial governments have developed regulations for the implementation of these tax rules of the legislative power. Second, the existing number of central-local shared taxes and local taxes under the Basic Law of the tax legislative and provincial governments have the following: <<1) The right to provisions in the magnitude of Business Tax entertainment in the region within the applicable tax rate to determine the power: (2) The right to due to accidents, natural disasters, the case of heavy losses decided to reduce the power of tax resources <<3) have not listed the name of the other non-metallic mineral ore and other non-ferrous metal mine decided to suspend the introduction of resource tax levy or the power of <<4) The right business decision for the autonomous regions of the periodic reduction of corporate income tax authority, <<5) The right to lonely old people and martyrs of disability income as a result of a serious nature heavy losses caused by disasters such as the power of personal income tax reduction.
Overall, China's local government has neither the power to determine the tax base does not regulate tax authority (except a few small foreign taxes). Central government to local government control too stringent on the tax authority or local taxes tend to centralized management as the main authority over / J,, China is essentially local taxes by the central legislation or delegated legislation received eight transferred to local governments and by the local government responsible for the collection of taxes.'s tax division of authority is unreasonable. Inevitably produce many adverse consequences. First.
In a sense. Current revenue-sharing system, management system is basically a replica of the traditional central place to put money not to decentralization. Could not go one step further, though to breaking the highly centralized system of unified revenue and expenditure have a positive effect, to a certain extent, to mobilize local enthusiasm. But with the deepening of reform and development of this system to their own shortcomings being exposed from the central point of view. It just let go of money. And then present their right hands the money back again. Therefore may be left to put the situation right hand from the local point of view, it is money rather than get right. Or even in some respects has certain powers. But because they are not provided by law. With considerable arbitrariness, the local government authority can not determine their own income tax form and size. Resulting in local spending responsibilities (powers) and income rights (property rights) does not match between. Affect the enthusiasm of local governments to play. Some of the areas prone to natural short-term behavior. Second.
Local fees and fund the local tax base erosion and some form of qualified tax should be levied on local fees or fund the project because no revenue legislative and local government can not tax. This weakens the local tax revenue as the main source of local government's position. Restricting the expansion of the tax. And encourage local governments to continue to expand their financial resources through fees. Resulting in more fees. A large scale. Or even 'cost squeeze tax' phenomenon. Disrupted the normal economic relations of distribution. The third.
Local tax management is highly concentrated in the center. Where local conditions are not conducive to handle economic problems of local taxation. Places unable to provide regional public goods due to natural conditions and economic development around the level of imbalance in the tax base across the country the case of uniform legislation. Will inevitably result in adverse effects on the central requirements of the following levy taxes. Where there is no corresponding source of tax revenue. Or not due to the introduction of small sources. With the local economic development. Area has a tax base. They need to use tax regulation, and have no right to levy local taxes accordingly. Which is not conducive to local governments to develop local resources. Financial resources to cultivate backbone. Weakened the unique role local taxes play. The lack of regional public goods needed to provide independent financial resources, the local government in the public interest to provide regional public goods are also often appeared to be inadequate. Three.
Reasonable division of tax power, the establishment of three revenue-sharing
A local tax management division of authority of the basic requirements Local tax administration division of authority.
Reflects the distribution of central and local financial authority. Directly related to the local financial authority of the great / J,. Benefit from the system level, where the exercise of property rights protection. A reasonable tax division of authority is necessary to ensure that the central government's dominant position and the macro-control ability. But also to mobilize the enthusiasm of local governments and to ensure that the needs of local public expenditure.
First, the local tax division of the right of choice should be considered the division of government functions and the nature of taxes in the income tax and tax division. As the tasks undertaken by the central government and with global importance. Mainly responsible for local government and regional economic and social development is closely related to the transaction so. According to the central and local government division of functions are different. The whole society will adjust the distribution of income taxes, economic stability and growth in the cyclical change in. Economic stability as a means of taxes. Macro-control performance, the role of coordinating international relations major tax revenue. Sources in the regional distribution is extremely uneven nature of a differential regulation of natural resource taxes. Transferred to the central. Will have obvious benefits, largely in the daily lives of residents used to provide public goods closely related to the allocation of resources like taxes, less liquid property class and local taxes are closely related to socio-economic development of small taxes and so on. Transferred to the local: a wide range of tax sources. More powerful revenue-neutral tax. Can be used as the central and local shared taxes. Adjusted by the proportion of shared central and local tax revenue scale. To meet the central macro-control functions and local resource allocation needs. Links to free download http://eng.hi138.com
The second is to determine the local tax authority and division to adapt to local characteristics.
Adapt to the regional economic development. Play the role of economic regulation of tax due to geographical location, natural resources, climatic conditions and other natural factors. Asked our region is extremely uneven social and economic development. The resulting distribution of inter-regional tax sources there is a big difference in our local tax authority to identify and divide to adapt to the requirements of economic regionalization. Reflect regional differences. Promote regional economic development in the process of adapting to economic regionalization play tax must pay attention to the economic regulatory function, so that local governments in the region according to the characteristics and economic development in tax relief through tax or tax means. To regulate the economy. Achieve the sustainable development of regional economy.
2 a reasonable division of the provincial local government tax jurisdiction Permission is set to establish the most important issue of local taxation.
Local tax system is to build the core content of local government tax authority, including the contents of many local governments levy, the authority to stop collecting taxes, collection and management of local government authority, to determine the tax base, tax authority, the local tax legislative power, the power of interpretation and so on. Can be simply summarized as the legislative power, the power of interpretation, the right to adjust and collection management. In order to ensure the stability of the division to obtain these permissions. As soon as possible the development of China's 'Tax Law>> and <<local taxes General.' Clear from the legal level of local government tax authority. And on this basis, the right of further tax adjustments and clear, to ensure the smooth establishment of local tax.
Present in our local tax. In addition to collection management in local government outside. Legislative power of interpretation and policy adjustments are still highly concentrated in the central power. To improve our local tax. Should not violate the unity of the national tax law, does not affect the central government's macro-control capacity. Without prejudice to the premise of a unified national market. Give local governments the necessary Provincial legislative power of interpretation and adjustment of rights. According to local sources of revenue distribution of the administrative area and the basic financial needs, or choose to set up their own local tax levy for the right part of the local tax authority in China can be divided into three levels to consider (1) the introduction of national unity. And a greater impact on the macroeconomic local taxes, such as sales tax, personal income tax. By the central government can implement the basic rules and methods, will be charged to local devolution. (2) the introduction of national unity, but the national macro-economic impact of over / J, and a greater impact on the region's local taxes, such as urban construction tax, property tax, land tax, urban land use tax. In addition to the basic laws and regulations by the central government outside. The implementation of the right to adjust the way tax policy interpretation and collection management can be delegated to local governments. (3) introduction of non-uniform across the country. Has obvious regional characteristics of local tax. Deed, such as slaughter, with its tax legislative and policy interpretation, and the right to adjust the tax collection and management rights can be transferred to local governments. Local government resources can be combined with local economic and social development. Reported to the Central Government for approval. To ensure national unity under the premise of tax. Decided to levy local taxes. It must be stressed here is. Local tax legislative power, 'where is the place where the provincial level, local tax legislative authority. Refers to the provincial people's congresses.
In addition. For some central and local shared tax, a general unified by the central government tax administration. And local governments should be entitled to share in order to standardize the management of this direct allocation. Central to the system must be constrained. Legislative approval to establish a sound tax system. Supervise and guide the local tax legislation. Reasonably determine the local government tax authority a division of the tax on the basic right to know. Can be condensed to reflect the following table:
3 a reasonable division of the provincial local government tax jurisdiction
These are from the central and local (provincial) relations point to the right of local tax division of the study. But local government is a big category. Its internal and can be divided into different class times. According to the requirements of the tax system reform. Adhere to a different class times the government's powers and financial authority corresponding to the principle. Corresponds to a level of government finances. Establish and improve the local tax system, then our local tax system should also be divided into four levels within the time that the provincial local tax, local tax to county level and township local tax where the tax system, but in fact set the local tax system in this way is lack of efficiency. Is not necessary. Too many times the local tax level will bring a range of issues. First-class times and more. Will increase the division of powers and financial difficulty. Causing various levels of government tax revenue between the co-ordination difficulties. Second. There is not enough local taxes to meet the various needs of the local tax system of levels. Again. If the class times more. And each level is to establish the appropriate local tax. In between all levels of government tax division, the tax authorities may be due to the increase, the limited tax base, to shift the tax burden and other reasons. Resulting in low efficiency of local tax collection and regional tax increases. Last. Local tax revenue will create too much class time management difficulties, so in the establishment of local tax at the same time. There may be reasonably necessary to determine the local tax system-level meeting.
Class times for our local tax issues. Generally believed. China should establish a central, provincial, county government level three times. While increasing the number of provinces. Narrow the scope of the provincial area Cancel the city and township levels of government, the county became the lowest level of government. Direct management of the provincial counties. Could be further streamlined administration. The division of powers between levels of government more streamlined and clear accordingly for local government (provincial or less) local tax authority issues. The basic principles can still be classified according to processing the relationship between central and local taxation principles. Specifically, the tax authority on the basis of the characteristics of local tax and importance, and impact on the local economy. Determine the ownership of local taxes and local government tax authority. Times at different levels within the local tax share of local taxes by the higher unified management and collection. Times at different levels of local government in the process of establishing local tax. Still higher levels of local government to ensure that the tax initiative. And the resulting lower levels of local government caused by the shortage of financial resources. You can establish the appropriate local tax adjustment system. Appropriate for lower levels of local government subsidies to solve.
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