An analysis of the dynamics of the rapid growth of tax revenue in China within the framework of tax capacity and tax effort reveals three major drivers following the tax sharing reform. First, the nature of the decent...An analysis of the dynamics of the rapid growth of tax revenue in China within the framework of tax capacity and tax effort reveals three major drivers following the tax sharing reform. First, the nature of the decentralization contract under the tax sharing system provides strong incentives for taxation. Second, the system of indirect taxes boosts taxpayers’ taxable capacity. And third, China is enjoying the intensively present tax growth dividend. In the future, the first factor will diminish; the second factor will partially cease functioning; and the third factor will remain constant. Over the long term, the tax growth dividend will be long lasting and tax revenue will keep growing at a high speed.展开更多
文摘An analysis of the dynamics of the rapid growth of tax revenue in China within the framework of tax capacity and tax effort reveals three major drivers following the tax sharing reform. First, the nature of the decentralization contract under the tax sharing system provides strong incentives for taxation. Second, the system of indirect taxes boosts taxpayers’ taxable capacity. And third, China is enjoying the intensively present tax growth dividend. In the future, the first factor will diminish; the second factor will partially cease functioning; and the third factor will remain constant. Over the long term, the tax growth dividend will be long lasting and tax revenue will keep growing at a high speed.
