About the Local Administrative Authority of the tax system

[Paper Keywords] local taxation of Tax Tax Management
[Abstract] the importance of the local tax system is based on the division of tax authority. The efficiency of public expenditure management system theory and the status of the government determines the right of local taxes by necessity. Permissions of the current tax based on the still inclined to authoritarianism, authority division is very unreasonable. We should fully consider the division of governmental functions and the nature of taxes, combined with local realities. rational division below the provincial level and provincial tax administration authority.

Science division of the local tax administration authority is to establish an important basis for improving the local tax system. The current division of authority from the tax administration requirements of the tax system completely is quite a distance, indicating that the current tax management authority only over nature. Should conform to our current deepening Economic reform and accession to the WTO and international Economic integration to further the objective requirements of the local tax administration authority to the existing division of innovation and reform.

First, the local tax authority by the theoretical basis for management
Local tax as a financial management system, an important part, and the division of expenditure responsibilities between the government and the government have close ties between the divided tax. The one hand. In accordance with the theory of marginal utility and flexibility of Western preference theory analysis. By the central provision of public goods would result in efficiency losses. Therefore, the provision of public goods must be the multilevel nature of the. On the other hand. Management system from the government point of view. As a result of management capacity and management efficiency constraints. Practiced around the world are multi-level system of government. Local Government should provide public goods as the main body in order to more effectively meet the public needs the whole society. To reach or approach the 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) by the Government at all levels of financial authority and the appropriate allocation between property right to basically meet the needs of local government general expenditure needs. Tax revenue as the main source of revenue. Naturally focused on the division of property right now the tax division of the surface on. That is, "points-based tax practice in the government's delegation of authority from the central to local. To establish two sets of central and local taxation. And determine the appropriate levels of government authority, so that the rights of the country's tax revenue between the central and local distribution.

Establishment of local tax system is to plan for all local governments of various taxes on fixed incomes. From the tax legislation, interpretation, storage and use tax collection and management to have a complete system. What are the taxes should be designated for the range of local taxes. Local governments which should have administrative rights on local taxes, local taxes, local governments have requirements of those Laws and regulations. The core of the system is the division of Tax Management.

Second, the management authority of local tax status and problems by
A local tax / BU important issue 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 legislative power as the core of tax administration between the central and local rational division. Is an essential feature of the tax system. <<The State Council on the implementation of tax sharing system of decision>> states: "The central taxes, shared taxes and local taxes to be concentrated in the central legislative power", this provision constitutes a central and local tax revenue of the existing legislative framework by the system. At present the enjoyment and exercise of Local Government Tax Legislation as follows: First, the existing urban maintenance and construction tax property tax, vehicle and vessel usage tax, urban land use tax and other taxes are the provisions of the Ordinance. Provincial governments have developed these taxes Ordinance Enforcement Rules of the legislative power. Second, the current number of central-local shared taxes and local taxes under the Basic Law of the legislative power of provincial governments enjoy the following tax Laws: <<1) The right to provisions in the magnitude of Provisional Regulations on Business Tax entertainment in the region within the applicable tax rate to determine the power: (2) to enjoy due to accidents, natural disasters, the case of heavy losses has decided to reduce the power of the resource tax <<3) The right to not list the name of the other non-metallic ores and other non-ferrous mineral resources, decide to levy taxes or postponing the introduction of the power <<4) The right of ethnic autonomous areas the company decided to implement regular reduction of enterprise income tax powers, "<5) The right to disability income widowed lonely old people and families of martyrs as a result of severe natural heavy losses caused by disasters such as the power of personal income tax reduction.

Overall, neither of the local government the power to determine the tax base does not adjust the tax authority (except a few small tax outside). The central government to local government control permissions on too tight or tend to tax the local tax-based centralized management authority over / J,, of the local tax is essentially refers to the central legislation or delegated legislation closing eight-under local government and by the local government is responsible for tax collection. Taxation by irrational authority. Inevitably produce a lot of adverse consequences.

First. Sense. The existing management system of the tax system is basically a replica of the traditional system of money is not central to the local release of decentralization. Could not go a step further. While breaking the highly centralized system of unified revenue and expenditure have a positive role, to a certain extent, to mobilize local enthusiasm. But with the deepening of reform and development of defects in this system itself increasingly exposed. From the central point of view. It go just money. Present their right hands and then recover the money back. Therefore may be left put the right hand of the situation. From the local point of view, it gets the money instead of right. Or even in some ways has some power. 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. Cause local expenditure responsibilities (powers) and income rights (IPR) between the do not match. Affect the enthusiasm of local governments to play. Natural areas prone to some short-term behavior.

Second. Local fees and fund the local tax base erosion. That meet the conditions should be imposed in the form of taxes or local fees fund projects without the local government Tax Legislation and not taxed. This weakens the local tax revenue as a major source of local government status. Restricted the expansion of the tax. And to promote local governments continue to expand their financial resources through fees and charges. Causing more fees. Large scale. Or even "fee squeeze tax" phenomenon. Disrupted normal Economic relations of distribution.

Third. Local tax management is highly concentrated in the center. Local conditions are not conducive to local Economic problems dealing with local tax revenue. Also unable to provide local regional public goods. Due to local natural conditions and Economic development is extremely uneven across the country the case of uniform legislation sources. Will inevitably cause adverse effects on the central requirements of the following levy taxes. Where no corresponding tax sources. Or because of tax base is small and not sufficient to levy. With the development of local economy. Have some kind of local tax sources. Also required tax regulation, and have no right to levy local taxes accordingly. Which is not conducive to local governments develop local resources. Train the backbone of financial resources. Undermine the unique role of local taxes play. The lack of regional public goods needed to provide independent financial resources, the local government in the public interest in the provision of regional public goods are also often appeared to be inadequate.

III. Rational division of tax power, the establishment of three tax-sharing
1 local tax system by the basic requirements of administrative privileges
Local Tax Management division. Reflects the distribution of central and local property rights. Local property rights is directly related to the large / J,. Benefit from a system-level security where the exercise of property rights. Reasonably necessary to ensure the tax authority by the dominant position of the central government and the macro-control capacity. But also help to mobilize the enthusiasm of local governments and to ensure the needs of local public expenditure.

First, the right of local tax options should be considered by the division of labor and the tax nature of government functions. In the division of tax and tax on income. As the tasks undertaken by the central government and importance of the overall situation. Local governments in the region is mainly responsible for the economic and social development are closely related matters. So. According to the central and local government division of functions are different. The whole society will adjust the distribution of income taxes, cyclical economic changes in the stability and growth. Economic stability as a means of taxes. Macro-control performance, the role of coordinating international relations major tax revenue. Sources in the regional imbalance in the distribution of natural resources capable of regulating the nature of the tax differential. Placed under the central government. Nature of obvious benefit will be mainly used to provide daily lives of residents close to the resource allocation of public goods class taxes, less liquid property class and local taxes are closely related to social and economic development and other small taxes. Under local: sources extensive. More powerful revenue neutral tax. Can be used as the central and local shared tax. By adjusting the proportion of shared tax revenue of central and local scale. To meet the central macro-control functions and local resource allocation needs.

Second, all over the division of tax authority to identify and to adapt to local characteristics. To adapt to regional economic development. Economic regulation and control to play the role of taxation. Because of geographical, natural resources, climate conditions and other natural factors. Asked the social and economic development of regional level is extremely uneven. The resulting distribution of tax sources between regions there is a big difference. Our local tax authority to identify and division to adapt to the requirements of economic regionalization. Reflect regional differences. Promote regional economic development. In the process of adapting to economic regionalization must pay attention to the economic regulatory function to play the tax, so local governments in the region according to the characteristics and economic development in taxation or tax relief through tax measures. Regulate the economy. To achieve the sustainable development of regional economy.

2 rational division of the provincial jurisdiction over local government tax revenue
Permissions settings are the most important issue to build local tax. Is to build the core of the local tax system. Local government tax authority, including the contents of many local governments levy taxes or suspension of privileges, rights management, local governments collected to determine the sources of tax revenue, tax authority, the local tax legislative power, the power of interpretation and so on. Can be summarized as the legislative power, the power of interpretation, the right to adjust the rights and collection management. In order to ensure the stability of the division to obtain these permissions. China should be developed as soon as possible <"Tax Basic>" and "<Local Tax Code">. Clear from the legal level of local government tax authority. And on this basis, the tax adjustment and the right to further clear, so as to ensure the smooth establishment of the local tax system. Links to Research Papers Download http://www.hi138.com present in our local taxes. In addition to collection management at the local government outside. Legislative power, the right of interpretation and policy adjustments are still highly concentrated in the center. For the Improvement of the local tax system. Should not violate the unity of the national tax Law, does not affect the central government macro-control capacity. Without prejudice to the premise of a unified national market. Provincial Local Government to give the necessary legislative power, the power of interpretation and adjustment rights. According to local sources of tax revenue distribution of the administrative region and the basic financial needs, or choose to set up their own part of local taxes levied by the Local Tax for the correct permissions can be considered from three levels (1) the introduction of national unity. And the macroeconomic impact of large areas of taxes, such as business tax, personal income tax. Can be formulated by the central basic regulations and implementation measures will be decentralized to the local collection and management. (2) the introduction of national unity, but the macroeconomic impact of the country than the / J, and a greater impact on the region's local taxes, such as urban construction tax, property tax, land value increment tax, urban land use tax. In addition to the basic statutory requirements by the central authorities. Policy approach of its implementation and interpretation of the right to adjust the tax collection and administration of rights can be delegated to local government. (3) introduction of non-uniform across the country. Obvious regional characteristics of local taxes. Such as slaughter tax deed, the tax legislative, policy interpretation, tax collection and administration of the right to adjust the rights and can be put under local government. Local government can be combined with local economic resources and social development. By the central government for approval. In ensuring the unity of the country under the premise of tax law. Decide to levy local tax. Must be emphasized here is. Local tax legislative power, "where is the place where the provincial and local tax legislative authority. Is the provincial people's congresses.

In addition. For some central and local shared tax, general tax revenue by the central government for unified management. And the share of local government should have a direct allocation of this order to standardize the management. To the central system must be constrained. Legislative approval to establish and improve the tax system. Monitor and guide the local tax legislation. Reasonably determine the authority of local government tax revenue by a tax on the right of the above basic understanding. The following table can be condensed to reflect:

3 rational division of the provincial jurisdiction over local government tax revenue
These are from the central and local (provincial) relations point to the right of local taxes by the study. But the local government is a big category. Its internal level and can be divided into different times. According to the requirements of the tax system reform. Adhere to the different grade of government powers and the principle of corresponding financial authority. Corresponding to a level of government finances. Establish and improve the local tax, then our local tax system should be divided into four levels within the time that the provincial local tax, to the local county level of local taxation where the tax system and the township tax. But in fact set the local tax system in this manner is inefficient. Is not necessary. Too many local tax level meeting will bring a series of problems. First-class times and more. Power and financial power will increase by more difficult. Resulting in tax revenue between levels of government coordination difficulties. Second. Not enough class time to meet the various local taxes where the tax system needs. Again. If the class times more. And each one has established the appropriate local tax. At all levels of government divided between the right to tax, the tax authorities may be due to the increase, the limited tax base, shift the tax burden of other reasons. Local tax collection caused by the low efficiency and regional tax increases. Finally. Local tax revenue will also bring too much class time management difficulties. Therefore, in the establishment of local tax at the same time. Also necessary to reasonably determine the grade of the local tax system.

The grade of our local tax issues. Generally believed. China should establish a central, provincial and county level three times the government. While increasing the number of provinces. Narrow the scope of provincial-level regions. Cancel the city and township governments, the County to become the lowest level of government. Direct management of the provincial counties. Can further streamline the administration. The division of powers between levels of government more streamlined and clear accordingly. For local government (provincial level) local tax authority issues. The basic principles of its division can still be handled in accordance with the relationship between central and local principles of taxation. Specifically, the tax authority in the local taxes on the basis of the characteristics and importance, and impact on the local economy. To determine the ownership of local taxes and local government tax authority. For class times in different places within the tax system shared by the higher local taxes for unified management and collection. At different levels of the local government in the establishment of local tax processes. Still higher level to ensure ownership of the local government tax revenue. And the resulting lower levels caused by the shortage of financial resources of local governments. You can establish the appropriate local tax adjustment system. Appropriate lower levels of local government subsidies to solve. Links to Research Papers Download http://www.hi138.com