1, China 1994, the biggest reason for the tax-sharing reform is that China's central finance has fallen into a serious crisis, the proportion of fiscal revenue to GDP and the proportion of central fiscal revenue to the whole fiscal revenue have dropped rapidly, the central government is facing an unprecedented "weak central" state, and the national macro-control ability has dropped sharply. In order to reverse this situation, the state initiated the tax-sharing reform. Therefore, the biggest advantage of the tax-sharing reform is to straighten out the distribution relationship between the central and local governments, thus laying the basic pattern of financial resources distribution. The central tax revenue plays a leading role, which is convenient for the state to concentrate its financial resources, solve major social and economic problems and stabilize the overall situation. At the same time, it also established the autonomy of local governments in local taxation and mobilized the enthusiasm of local economic development.

2. Tax-sharing reform According to the principle of combining administrative power with financial power, taxes are uniformly divided into central taxes, local taxes and taxes enjoyed by the central and local governments, and a central and local tax-sharing system is established, which is collected and managed by the central and local tax authorities respectively. Taxation has become a tool of national macro-control. The central and local governments guide industrial and commercial investment and production, adjust the economy and adjust the economic structure through different combinations of taxes and different tax rates.

3. The establishment of tax refund system and transfer payment system is conducive to the special subsidies and care of the central government for some economically backward areas, and to the development of local economy and the improvement of people's living standards.

4. Existing problems: The biggest problem in the tax-sharing reform lies in the disunity of the central and local affairs and financial rights. The central government is too strong, and the tax revenue of local governments (mainly at or below the county level) is insufficient, which has caused many derivative problems: local governments don't have so much financial resources, so they open up financial resources outside taxes, among which fees (taxes, profits and debts are the four major financial revenues) are the most, and most of them are extra-budgetary income, so there is no supervision now. In addition, it led to land finance, and local governments began to sell land in order to raise funds and obtain land transfer income, which is the chief culprit leading to the current high housing prices.

5. Reform: prescribe the right medicine. First, adjust the distribution of central tax and local tax to ensure the unity of administrative power and financial power; The second is to rectify the fiscal revenue of local governments, reduce and cancel the extra-budgetary revenue, and try to make the income tax transparent and clear.

6. Documents: There are many professional documents on tax-sharing reform. You can search online, or you can search online in China journals. The key words of the search are tax-sharing reform and land finance.

PS: My graduation thesis is about the reform of fiscal and taxation system. If you want information, you can give me an email address.