Glamor Economics

Chapter 130

Chapter 17 Section 3 Adjustment of Personal Income and Realization of Social Equity - Taxation

Taxation is a means for the state to obtain fiscal revenue free of charge in accordance with statutory standards in order to realize its functions. It is a specific distribution relationship formed by the state participating in the distribution and redistribution of national income by virtue of political power.Basically all countries in the world charge taxes, and people with more income pay more taxes.Taxation will play a role in regulating income and achieving fairness.

The main points of the concept of taxation can be expressed in five points: taxation is the main form of fiscal revenue; taxation distribution is based on the political power of the country; taxation is a distribution relationship established by law; taxation takes the form of collection in kind or currency; Taxation has three basic characteristics: mandatory, free and relatively fixed.

The initial form of taxation in our country originated in the period of slavery, but before that, some primary forms of taxation had appeared.

At the end of primitive society more than 4000 years ago, it is said that Di Ku, one of the emperors, had levied taxes.Entering the slave society, the forms of taxation have diversified.At that time, "Under the whole world, is it the land of the king; on the shore of the land, is it the king's ministers", the royal family had the supreme power, and most of the land's products had to be handed over to the royal family.For example, for the "tribute" of the Xia Dynasty, Mencius had a saying that "Xiahou's family paid tribute at fifty", which meant that the tax was paid on the basis of 50/1 of the harvest in units of 10 mu; According to the tax law of "Ten and Help", that is, for those who cultivate 70 mu, the private land can only be 63 mu, and the remaining 7 mu is public land, and the harvest must be handed over in full; Take ten mu as a tax", which means that the subjects hand in 10% of the fruits of their own cultivation.

In 594 BC, Duke Xuan of Lu announced the taxation of private land other than well fields (public land), that is, both public land and private land should pay taxes according to a certain standard, that is, "early tax mu".Although there were improvements in the taxation of later dynasties, the spirit all originated from the "early tax mu".

In modern macro-economy, the role of taxation should not be underestimated, specifically in promoting equal competition; adjusting economic aggregates to maintain economic stability; rationally adjusting distribution, etc.Taxation has the following basic functions:

1. Organize financial revenue.Taxation is a form of distribution in which the government participates in social distribution by means of national coercive power and concentrates a part of the surplus product.As the tax is mandatory, free and fixed, it can guarantee the stability of income.At the same time, the collection of taxes is very extensive and can raise fiscal revenue from multiple sources.

2. Regulating the social economy.The government's participation in social distribution by virtue of national coercive power will inevitably change the share of various social groups and their members in the national income distribution, reducing their disposable income.However, this reduction is not equal. Some people pay more taxes to the state, while others pay less. The gains and losses of such interests will affect the taxpayers' economic activity and behavior, and then have an impact on the social and economic structure.

3. Supervise and manage social and economic activities.In the process of tax collection, the state must establish the basis of daily in-depth and meticulous tax management, grasp the tax sources, understand the situation, find problems, supervise taxpayers to pay taxes according to law, and fight against violations of the "Tax Law", so that Supervise the direction of social and economic activities and maintain the order of social life.

Taxation has always been a distribution category closely related to the state and society, reflecting the distribution of economic interests between the state and members of society.In ancient and modern China and abroad, taxation has always been a hot spot and focus in political, economic and social life, and it is a concentrated expression of various interest relations and contradictions in the whole society. Taxation has a profound and significant impact on the consolidation of political power, economic development and long-term social stability.

How taxes are collected and used has an important impact on building a harmonious society.To give full play to the role of taxation requires all tax collectors to actively perform their tax collection duties and all taxpayers to actively undertake their own tax obligations.

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The principle of fair taxation is one of the principles of taxation.It is about the principle of fairly distributing the tax burden to each taxpayer, that is, the national taxation should make the burden of each taxpayer adapt to its economic situation, and keep the burden level among the taxpayers in balance.The principle of fair tax burden has been Adam?Smith listed the first of the four principles of taxation.Fairness includes fairness, equality, and reasonableness.The principle of fair tax burden includes two meanings of horizontal fairness and vertical fairness.Horizontal fairness requires taxpayers with the same economic conditions to bear the same amount of taxes; vertical equity requires people with different economic conditions to bear different amounts of taxes.

The start of tax collection refers to the beginning of the effective period of a certain tax stipulated by the national tax law.The result of exercising the right to levy taxes is that the legal effect of a certain tax law becomes effective on the same day or on a date clearly stipulated, and taxes begin to be collected.

The cessation of taxation refers to the cessation of the validity period of a certain tax stipulated by the national tax law.There are two forms of suspension of tax collection: one is direct suspension of collection, that is, it is expressly stipulated in relevant tax laws and administrative regulations that a certain type of tax will be suspended at a certain time; the other is indirect suspension of collection, that is, it is stipulated in relevant tax laws and administrative regulations New regulations were made in the new tax law formulated and promulgated later.According to the principle that the latter law negates the former law and the new law is superior to the old law, the provisions of the former law shall be regarded as cessation of collection within the scope of its conflict.

When a taxpayer who postpones tax payment has special difficulties and cannot pay the tax payable according to the provisions of laws and administrative regulations or the time limit determined by the tax authorities in accordance with the provisions of laws and administrative regulations, he may file an application for deferment of tax payment to the tax authorities. With the approval of the state taxation bureaus and local taxation bureaus of provinces, autonomous regions, and municipalities directly under the Central Government, the payment of the due taxes can be postponed within a period not exceeding three months.No late payment penalty will be levied on taxpayers who are approved to defer tax payment.

Avoidance generally refers to the avoidance of law enforcement officers in cases that have a specific relationship with the person (such as close relatives with the party concerned and his agent, interested in the handling of the case, or other relationships that may affect the fair handling of the case, etc.) Instead of undertaking handling tasks, in order to prevent favoritism and fraud.The avoidance system is an important organizational guarantee for the justice of law enforcement. It is specially designed to protect the fairness and impartiality of law enforcement. Therefore, it is widely used in almost all judicial and administrative law enforcement fields, and even many non-law enforcement fields but Industries that need to protect the principles of fairness and justice also adopt this avoidance system.

Taxation management refers to the management and supervision of taxation activities by taxation authorities.In order to ensure the timely and full amount of national tax revenue into the treasury, the national tax authorities need to conduct command, plan, organize collection, coordinate control, supervise and inspect tax activities in accordance with tax laws, administrative regulations, and national tax policies and decrees. The general term for this series of work is tax management.

(End of this chapter)