Glamor Economics

Chapter 95

Chapter 13 Section 5 Why the State Taxes – Tax Policy

In March 1949, the Second Plenary Session of the Seventh Central Committee of the Communist Party of China decided to transfer the Party's work center from the countryside to the cities, with production and construction as the central task, and the focus of taxation work also began to shift from the countryside to the cities.In the same year, the "Common Program of the Chinese People's Political Consultative Conference" which played the role of the provisional constitution stipulated: "The national tax policy should be based on the principle of ensuring the supply of the revolutionary war, taking care of the recovery and development of production and the needs of national construction, and simplifying the tax system. , implement a reasonable burden." This is the general taxation policy in the early days of the founding of the People's Republic of China.Under the guidance of this general taxation policy, according to the prominent problem of the inconsistency of China's taxation system, a taxation policy of unifying taxation and balancing fiscal revenue and expenditure was proposed.

When New China was founded in 1949, finances were relatively difficult. The most prominent problem at that time was that the tax system was not unified: the old liberated areas still implemented the tax system formulated by each base area, and the new liberated areas generally followed the tax system except for abolishing some unreasonable taxes of the national government. Taxation under the old tax law.The taxation systems in various places are different, and the tax burden is unbalanced, which is not good for the development of production and the guarantee of fiscal revenue.The Central People's Government has formulated a general tax policy to unify taxation and balance fiscal revenue and expenditure.

The specific embodiment of this general taxation policy is the "Decision on the Unification of China's Tax Administration" issued by the Central People's Government Administration Council in January 1950, the "China Taxation Implementation Rules" and the "Interim Organizational Regulations for Taxation Authorities at All Levels in China" and other documents. , clearly stipulated a series of major principles such as new China's tax policy, tax system, management system, and organizational structure, and established the first unified tax system in New China. Good conditions have been created.

Tax policies are formulated under the guidance of certain economic and tax theories and according to the country's political and economic situation in a certain period of time.Tax policies can be divided into general tax policies and specific tax policies: the general tax policy is determined according to the basic contradictions in the country's taxation in a certain historical period, and it is the guiding principle to solve these basic contradictions, also known as the "tax system establishment principle". "; Specific taxation policies are guiding principles for resolving specific contradictions in taxation work under the guidance of general taxation policies.The general taxation policy is relatively stable in a certain historical period, while the specific taxation policy will change with the economic and political situation.The general taxation policy is the guideline for establishing various taxation systems, while the performance of specific taxation policies in each taxation system is not the same.

The ideal tax policy should not only meet the needs of the country's fiscal revenue, but also have no adverse impact on the social economy.In our country, the following factors must be considered in formulating the correct tax policy:

1.The formulation of tax policies should not only ensure fiscal revenue, but also be conducive to promoting economic development.The economy is the foundation. Only when the economy develops can we have stable and sufficient financial resources.The starting point of formulating tax policies should be conducive to the development of production and the promotion of economic prosperity.Under the conditions of production development and economic prosperity, proceeding from reality, taking into account the overall financial resources of the country, as well as taxpayers' ability to pay taxes and psychological endurance, determine a moderate and reasonable overall tax burden level.It not only guarantees financial needs, but also is conducive to economic development.Neither can blindly emphasize "bonded tax" regardless of economic development and improvement of people's living standards, nor can we only pursue temporary "economic development" without paying attention to the construction of social public utilities and long-term economic development.

2.Tax policies should be conducive to the establishment of a socialist market economic system.The formulation of tax policies must be conducive to the formation of an equal competition environment, and the principle of fair tax burden must be adhered to; combined with the implementation of fiscal policies, it must be conducive to the adjustment of the macroeconomic aggregate; Fair competition and development of business methods; it is also conducive to the optimization of industrial structure.

3.The formulation of tax policy should be based on the separation of government and enterprise, which is conducive to the establishment of modern enterprise system for enterprises.Clear property rights, clear powers and responsibilities, separation of government and enterprises, scientific management, realize independent management, self-responsibility for profits and losses, self-accumulation and self-development, and form a truly independent economic entity in order to enter the market and survive and develop in the competition.

[links to related words]

Tax expenditure refers to the "tax expenditure system" composed of special relief items that deviate from the formal tax system structure.Specifically, it can be defined as: income loss or forgone income formed by special legal provisions, giving specific types of activities or taxpayers various tax incentives.

(End of this chapter)