Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction

Yang Le; Yu Naifu

doi:doi:10.11648/j.ijfbr.20190506.15

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Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction

Yang Le, Yu Naifu

Published in International Journal of Finance and Banking Research (Volume 5, Issue 6)

Received: 29 October 2019 Accepted: 18 November 2019 Published: 22 November 2019

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Abstract

Since 2015, Chinese governments at all levels have been advancing high-frequency tax and charges reduction, and the frequency of charges reductions is surprising. China has continuously deepened reform of tax-sharing system, constantly expanding local government power and increasing economic vitality. In order to promote the sustained and healthy development of China's economy, we should maintain a reasonable scale of government charges, adjust the charges range of the central and local governments, and further improve China's fiscal decentralization system and government charges management mechanism. In this paper, it mainly researches two-way interactive effect between financial decentralization and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for financial decentralization and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show that there is a positive interaction between financial decentralization and public service charges. That is, the public service charges is decreased with the increase of the degree of financial decentralization. Local governments gain more power, lower fees and promote economic development. The degree of financial decentralization is increased with the decrease of public service charges. Lower fees mean less government intervention in the economy and the degree of decentralization increases. In addition, the effect degree of the control variables related to financial decentralization and public service charges was analyzed in this paper.

Published in	International Journal of Finance and Banking Research (Volume 5, Issue 6)
DOI	10.11648/j.ijfbr.20190506.15
Page(s)	166-173
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Financial Decentralization, Public Service Charges, Two-way Interactive Effect

References

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APA Style

Yang Le, Yu Naifu. (2019). Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction. International Journal of Finance and Banking Research, 5(6), 166-173. https://doi.org/10.11648/j.ijfbr.20190506.15

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ACS Style

Yang Le; Yu Naifu. Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction. Int. J. Finance Bank. Res. 2019, 5(6), 166-173. doi: 10.11648/j.ijfbr.20190506.15

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AMA Style

Yang Le, Yu Naifu. Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction. Int J Finance Bank Res. 2019;5(6):166-173. doi: 10.11648/j.ijfbr.20190506.15

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@article{10.11648/j.ijfbr.20190506.15,
  author = {Yang Le and Yu Naifu},
  title = {Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {6},
  pages = {166-173},
  doi = {10.11648/j.ijfbr.20190506.15},
  url = {https://doi.org/10.11648/j.ijfbr.20190506.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190506.15},
  abstract = {Since 2015, Chinese governments at all levels have been advancing high-frequency tax and charges reduction, and the frequency of charges reductions is surprising. China has continuously deepened reform of tax-sharing system, constantly expanding local government power and increasing economic vitality. In order to promote the sustained and healthy development of China's economy, we should maintain a reasonable scale of government charges, adjust the charges range of the central and local governments, and further improve China's fiscal decentralization system and government charges management mechanism. In this paper, it mainly researches two-way interactive effect between financial decentralization and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for financial decentralization and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show that there is a positive interaction between financial decentralization and public service charges. That is, the public service charges is decreased with the increase of the degree of financial decentralization. Local governments gain more power, lower fees and promote economic development. The degree of financial decentralization is increased with the decrease of public service charges. Lower fees mean less government intervention in the economy and the degree of decentralization increases. In addition, the effect degree of the control variables related to financial decentralization and public service charges was analyzed in this paper.},
 year = {2019}
}

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TY  - JOUR
T1  - Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction
AU  - Yang Le
AU  - Yu Naifu
Y1  - 2019/11/22
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190506.15
DO  - 10.11648/j.ijfbr.20190506.15
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 166
EP  - 173
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190506.15
AB  - Since 2015, Chinese governments at all levels have been advancing high-frequency tax and charges reduction, and the frequency of charges reductions is surprising. China has continuously deepened reform of tax-sharing system, constantly expanding local government power and increasing economic vitality. In order to promote the sustained and healthy development of China's economy, we should maintain a reasonable scale of government charges, adjust the charges range of the central and local governments, and further improve China's fiscal decentralization system and government charges management mechanism. In this paper, it mainly researches two-way interactive effect between financial decentralization and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for financial decentralization and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show that there is a positive interaction between financial decentralization and public service charges. That is, the public service charges is decreased with the increase of the degree of financial decentralization. Local governments gain more power, lower fees and promote economic development. The degree of financial decentralization is increased with the decrease of public service charges. Lower fees mean less government intervention in the economy and the degree of decentralization increases. In addition, the effect degree of the control variables related to financial decentralization and public service charges was analyzed in this paper.
VL  - 5
IS  - 6
ER  -

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Author Information

Yang Le

School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China
Yu Naifu

School of Economics, Northwest Minzu University, Lanzhou, China

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APA Style

Yang Le, Yu Naifu. (2019). Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction. International Journal of Finance and Banking Research, 5(6), 166-173. https://doi.org/10.11648/j.ijfbr.20190506.15

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ACS Style

Yang Le; Yu Naifu. Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction. Int. J. Finance Bank. Res. 2019, 5(6), 166-173. doi: 10.11648/j.ijfbr.20190506.15

Copy | Download

AMA Style

Yang Le, Yu Naifu. Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction. Int J Finance Bank Res. 2019;5(6):166-173. doi: 10.11648/j.ijfbr.20190506.15

Copy | Download

@article{10.11648/j.ijfbr.20190506.15,
  author = {Yang Le and Yu Naifu},
  title = {Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {6},
  pages = {166-173},
  doi = {10.11648/j.ijfbr.20190506.15},
  url = {https://doi.org/10.11648/j.ijfbr.20190506.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190506.15},
  abstract = {Since 2015, Chinese governments at all levels have been advancing high-frequency tax and charges reduction, and the frequency of charges reductions is surprising. China has continuously deepened reform of tax-sharing system, constantly expanding local government power and increasing economic vitality. In order to promote the sustained and healthy development of China's economy, we should maintain a reasonable scale of government charges, adjust the charges range of the central and local governments, and further improve China's fiscal decentralization system and government charges management mechanism. In this paper, it mainly researches two-way interactive effect between financial decentralization and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for financial decentralization and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show that there is a positive interaction between financial decentralization and public service charges. That is, the public service charges is decreased with the increase of the degree of financial decentralization. Local governments gain more power, lower fees and promote economic development. The degree of financial decentralization is increased with the decrease of public service charges. Lower fees mean less government intervention in the economy and the degree of decentralization increases. In addition, the effect degree of the control variables related to financial decentralization and public service charges was analyzed in this paper.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Research on Reform of Tax-sharing System in the Background of Tax and Charges Reduction
AU  - Yang Le
AU  - Yu Naifu
Y1  - 2019/11/22
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190506.15
DO  - 10.11648/j.ijfbr.20190506.15
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 166
EP  - 173
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190506.15
AB  - Since 2015, Chinese governments at all levels have been advancing high-frequency tax and charges reduction, and the frequency of charges reductions is surprising. China has continuously deepened reform of tax-sharing system, constantly expanding local government power and increasing economic vitality. In order to promote the sustained and healthy development of China's economy, we should maintain a reasonable scale of government charges, adjust the charges range of the central and local governments, and further improve China's fiscal decentralization system and government charges management mechanism. In this paper, it mainly researches two-way interactive effect between financial decentralization and public service charges. The data of 31 provinces in China from 1999 to 2017 was used to construct the simultaneous equations model for financial decentralization and public service charges, and then the empirical test was carried out for the interactive effect between the two with 3sls method. The research results show that there is a positive interaction between financial decentralization and public service charges. That is, the public service charges is decreased with the increase of the degree of financial decentralization. Local governments gain more power, lower fees and promote economic development. The degree of financial decentralization is increased with the decrease of public service charges. Lower fees mean less government intervention in the economy and the degree of decentralization increases. In addition, the effect degree of the control variables related to financial decentralization and public service charges was analyzed in this paper.
VL  - 5
IS  - 6
ER  -

Copy | Download