The levy of a tax will inevitably make taxpayers or economic activities respond in some ways. If these reactions are consistent with the purpose that the government hopes to achieve when collecting the tax, this effect of the tax is called positive effect; If the actual economic effect of tax is contrary to the government's tax purpose, then this effect of tax is called negative effect. For example, the main purpose of levying special tax on burning oil in China is to restrict and compress burning oil by taxing crude oil and heavy oil burned by industrial boilers and kilns, and replace oil with coal. If there is enough data to show that after one or several years of tax collection, the government's income from the tax collection is getting less and less, which means that the phenomenon of burning taxable oil in industrial boilers and kilns is gradually decreasing, and the effect of the tax is positive. One of the most obvious negative effects of taxation is the window tax imposed by Britain on 1747. The purpose of taxation is to obtain fiscal revenue, but the result is that taxpayers have blocked the windows in order to evade taxes. Obviously, the government's adoption of this tax has not only failed to gradually increase fiscal revenue, but also blocked taxpayers' windows and reduced their comfort.

Whether the government levies a tax has a positive effect or a negative effect can be measured by the growth rate of the tax revenue. Expressed by the following formula:

Income growth rate = (current income-previous income)/previous income × 100%

If the main purpose of levying the tax is to raise fiscal revenue, and the income growth rate in the above formula is positive, then the effect of the tax is positive; If the ratio is zero or negative, it means that the tax has no positive effect or even negative effect.

If the main purpose of levying the tax by the government is not to increase fiscal revenue, but to restrict the development of economic activities in the original direction or promote their development in a new direction, then when the income growth rate in the above formula is negative, the tax will have a positive effect; If the ratio is zero or less, it means that the tax has no impact or has a negative impact.

Here, the government's duty is to analyze the positive and negative effects of taxation from time to time, and correct tariffs in time according to the causes of negative effects, so that the effects of taxation are consistent with the original intention of the government. Judging from the impact of taxation on taxpayers, it can generally produce income effect or substitution effect, or both. The so-called income effect of tax means that tax reduces the disposable income of taxpayers and changes their relative income. The income effect of tax itself will not cause economic inefficiency, it just shows that resources are transferred from taxpayers to the government. However, the further response of taxpayers to labor, savings and investment caused by income effect will change the efficiency and situation of the economy.

The substitution effect of tax means that when a tax affects relative price or relative income, people choose one kind of consumption or activity to replace another. For example, with the increase of progressive tax rate, the marginal income of work will decrease, and people will choose rest instead of part-time work; Another example is that taxing a commodity can raise its price, which leads to personal consumption choosing goods that are not taxed or lightly taxed. The substitution effect of tax will generally hinder people's free choice of consumption or activities, which will lead to inefficient or ineffective economy. The neutral effect means that government taxation does not disturb the operation of market economy, that is, it does not change people's choice of goods, between consumption and savings, or between hard work and leisure. Taxes that can produce neutral effects are called neutral taxes. The neutral tax can only be the total tax levied on everyone at one time-poll tax, because poll tax does not change with the form of economic activities, so it will not have any impact on economic activities. But the poll tax affects everyone and may affect the population planning of taxpayers' families. Therefore, even the poll tax cannot be completely neutral under normal circumstances. It can be said with certainty that in modern society, completely neutral taxation does not exist at all.

Contrary to the neutral effect, the non-neutral effect means that the government tax affects the economic operation mechanism, changes the individual's choice of consumer goods, labor, savings and investment, and then affects the allocation of resources, income distribution and the public's choice. Almost all taxes will produce non-neutral effects, so taxes in modern society are non-neutral taxes. From a macro perspective, the tax effect of economic globalization is mainly manifested in the fact that economic globalization will erode a country's tax sovereignty to a certain extent. As we all know, tax sovereignty is one of the main forms of national economic sovereignty. Economic globalization has strengthened countries' dependence on the international economy. While the economies of various countries are gradually moving towards coordination, in order to realize the goal of tax internationalization, it is bound to give up part of their own tax benefits.

1. The influence of economic and trade regionalization on national tax sovereignty

Since the 1960s, the European Union, the North American Free Trade Area and other regional organizations with different forms and degrees of economic and trade integration have been established one after another. These organizations are composed of documents signed by member governments in accordance with the prescribed procedures and approved by legal institutions. This kind of integrated organization, the same organization, shoulders the heavy responsibility of regulating or managing related matters within the scope of integration, and every member country has the obligation to obey or abide by it. This means that, objectively, there has been a transfer of power between the governments of member countries and the same institutions. No matter the specific content, form and degree of integration, there will be a power subject beyond the state. Only by recognizing this subject and transferring part of the power (including part of tax sovereignty) to it according to regulations can member States be qualified to participate.

According to the tax theory, domestic tax policies will distort the allocation of domestic resources, and similarly, tax policies under the background of economic globalization will also distort the allocation of global resources and cause net losses to the economy. This distortion is multifaceted. For example, consumers will choose between goods from different countries, manufacturers will choose between factors of production in different countries, workers will choose between work and leisure in different countries, and residents will choose between savings and consumption at home and abroad.

In addition, economic globalization, especially the global flow of financial capital, makes it possible for investors to raise funds from the international financial market, thus increasing the welfare cost caused by tax distortion. Historically, the erosion of national tax sovereignty by economic and trade regional integration is more prominent in the development of the European Union.

2. The influence of international capital market on national tax sovereignty

Before the Second World War, international trade has always occupied a dominant position in international economic exchanges. After World War II, capital gradually faded from the cloak of nationalism, and the huge instantaneous currency transaction and the disconnection between the actual demand and the nominal demand for money made it difficult for a government to effectively supervise this part of capital, let alone levy a reasonable tax on it. The emergence of financial derivatives and trading forms poses new challenges to the existing tax system. In addition, the sharp fluctuation of demand caused by huge currency transactions seriously affects the short-term change of exchange rate, and the psychological expectation generated by speculation often turns into a long-term trend. The fluctuation of exchange rate, especially sudden and large fluctuation, will do great harm to the stable growth of a country's economy, and then affect the effectiveness of national tax revenue and tax policy.

3. The influence of transnational corporations on national tax sovereignty

The development of multinational corporations has brought great changes to international trade. It is estimated that at present, about 50% of international trade actually occurs between multinational corporations or subsidiaries of multinational corporations. This kind of "intra-company trade" and transfer pricing behavior managed by the parent company as a whole is the main part of international tax avoidance, which has a great impact on the tax revenue of the countries concerned.

4. The influence of international tax coordination on national tax sovereignty

International tax coordination takes place in the superstructure field centered on government agencies, so it is more directly related to national tax sovereignty. Just like participating in regional organizations, all member countries recognize and obey the authority of international tax coordination. Within the scope of coordination, a country's economic activities and tax policies are no longer completely managed and formulated by its own government, but must abide by the resolutions and rules of the coordination organization. In fact, international tax coordination means that the countries participating in the coordination take the transfer of part of tax sovereignty as the premise, so as to realize the overall national optimization. Undoubtedly, the strengthening of international tax coordination will have a greater and greater impact on national tax sovereignty. Economic globalization puts forward objective requirements for the internationalization and standardization of a country's tax system. The so-called internationalized and standardized tax system means that while ensuring fiscal revenue, it fully respects the tax system structure and international practices of tax management, emphasizes the principle of tax fairness and "national treatment", and ensures high tax efficiency. According to the standards put forward by relevant experts of the International Monetary Fund, a reasonable and "standard" tax system should meet the following basic conditions: first, there are few taxes, mainly including import tax, goods tax (selective collection), general sales tax (including value-added tax), personal income tax, enterprise income tax and property tax; Second, the tax rate is not much, and the marginal tax rate should not be too high; Third, tax incentives and tax relief should be as few as possible to reduce the cost of tax management; Fourth, the provisions of the basic elements of various taxes should be basically the same. Such as value-added tax, enterprise income tax, personal income tax and social security, there are only similar specific provisions. In addition, after the establishment of the tax system, a scientific and reasonable collection and management system in line with international standards should be established. It mainly includes: (1) providing more convenience for taxpayers, so that taxpayers can consciously and effectively fulfill their tax obligations in accordance with the provisions of the tax law, and calculate, declare and pay taxes on their own; (2) The tax authorities conduct strict tax supervision and inspection, and have the right to take appropriate compulsory measures to implement tax collection and management for taxpayers; (3) modern and scientific means of collection and management, and extensive use of computer technology to improve work efficiency; (4) Taxpayers have the right to ask for reconsideration or even resort to law when they have objections to tax collection and management, and the government has the responsibility to protect taxpayers' tax payment rights according to law; (5) Establish a wide information network, strengthen international tax contact and cooperation, prevent international tax avoidance, and protect the mutual provision of tax information.

Under the background of economic globalization, China's tax system should pay more attention to the integration with international rules and practices, especially after China's accession to the WTO, and it is especially necessary to learn from international tax experience and common practices. Comparing and analyzing China's current tax system and tax policy with the principles and requirements of tax internationalization and standardization, there are still the following problems:

First, the function of the tax structure is absent, the relationship between the status, function and tax types is difficult to coordinate, and the overall coordination of the tax structure is not enough. The specific performance is: (1) The functional structure of various taxes is not perfect, and there are problems of duplication and absence of taxes. The common practice of most market economy countries in the world is to establish a tax structure with value-added tax, income tax and social security tax as the main taxes. Value-added tax mainly embodies the function of organizing income, income tax mainly embodies the function of economic adjustment, and social security mainly embodies the function of stabilizing society. The present situation of China's tax system is: value-added tax is "production-oriented" and can't completely deduct fixed assets; Social security tax is not levied, so it is difficult to effectively play the stable function of tax; In terms of income tax, domestic-funded enterprises and foreign-funded enterprises apply different income tax laws respectively, and the taxes are duplicated. (2) Compared with the international tax rate structure, the current tax rate structure is too different and the corporate tax burden is too high. During the tax reform from 65438 to 0994, the tax rate structure was greatly adjusted. The tax rate structure tends to be simplified and the nominal tax rate has declined, but compared with the tax rate structure of the same tax in the world, the actual tax rate in China is still high. In terms of turnover tax, China's VAT rates are 17% and 13% respectively. On the surface, there is little difference between the tax rates of 20% and 5% in China and western countries. However, under the realistic constraint of "productive" value-added in China, the deduction of purchased fixed assets is different from the "consumption" value-added tax in western countries, and its actual tax rate is higher than that in western countries. In terms of income tax, the corporate income tax rate in many countries in the world is around 30%. At first glance, it is almost the same as China's 33% tax rate. However, in fact, under the reality that the market environment, capital structure and financing channels are fundamentally different from those of western countries, the tax burden of enterprises in China is much higher than that of western countries, so the self-accumulation and development ability of enterprises in China is obviously weaker than that of western countries, which is not conducive to China enterprises to participate in international market competition.

Second, the tax system conflicts with international rules and foreign tax systems in the process of formulation and implementation. China's accession to the WTO is a substantial step towards the goal of tax internationalization to meet the requirements of economic globalization. Its basic premise is that the relevant systems in China must meet the requirements of relevant WTO agreements. The Agreement on Trade-related Investment Measures (TRIMS Agreement) adopted at the end of Uruguay Round has modified the content of traditional international law and become the most influential investment law in the world. This agreement introduces the international trade norms in GATT into the field of international investment for the first time, and applies "national treatment" to the field of investment activities. As a binding rule of international investment, one of the core of TRIMS is to cancel all investment measures that are inconsistent with "national treatment" and ensure equal competition between foreign capital and domestic capital. China's current preferential policies for foreign enterprises are inconsistent with this agreement, which also has a negative impact on the normal economic operation of China after its accession to the WTO.

Third, foreign investors enjoy "super-national treatment", which is not conducive to the formation of a unified and fair market economic system in the country. According to the current tax system, domestic and foreign-funded enterprises apply different enterprise income tax laws respectively, and foreign-invested enterprises enjoy low tax rates of 15%, 4% and 10% respectively according to different regions or the nature of enterprises. Then, according to the amount, the loan interest rate level, the length of time, different industries, the difference between profit remittance and reinvestment, advanced technology and equipment are provided, and special concessions are given from the aspects of tax reduction and exemption period, tax rate ratio, tax refund, calculation of income or sales, accelerated depreciation, etc. The tax rate of domestic-funded enterprises is 33%, except for high-tech enterprises approved by the State Council High-tech Industrial Development Zone, and the tax rate of 15% can be applied. This kind of tax policy, which is different inside and outside, makes foreign-funded enterprises enjoy better treatment than domestic-funded enterprises, forming the so-called "super-national treatment", which hinders the fair competition between domestic and foreign-funded enterprises.

Fourth, the contradiction between tax policy and industrial policy has caused a new imbalance in the economic structure. Since 1980s, China's tax law has gradually formed a pattern of different preferential policies for special economic zones, economic development zones, coastal open cities and inland cities. This kind of preferential tax policies with different regions, different emphases and different levels not only promotes the economic development of key regions, but also causes the imbalance of regional economic development, which is not conducive to the balanced competition between regions and the coordinated development of regional economic structure. In addition, the "one-size-fits-all" preferential tax policies are applicable to all special economic zones, regardless of industrial, productive or unproductive enterprises. They fail to give full play to the industrial and scientific-technological guiding role of tax policies, and guide foreign investment to the bottleneck industries and high-tech production enterprises that China urgently needs to develop, resulting in low-level repeated investment in special economic zones, which is not conducive to the adjustment of the national industrial structure and the coordinated development of the national economy. First of all, deepen the tax reform, improve the existing tax system, and build a new tax system for China to participate in the development of economic globalization. The overall requirement of building a new tax system is to establish a unified, standardized, scientific and reasonable tax system to meet the inherent requirements of China's market economy system and to be in line with international practices. Judging from the achievements made in China's tax reform, the conditions for meeting this general requirement have basically been met. At present, the focus of China's tax reform should be:

Gradually and rationally adjust the current tax structure. Appropriately reduce the proportion of turnover tax and increase the proportion of income tax; Gradually establish a tax structure with value-added tax, income tax and social security tax as the main taxes.

Reforming turnover tax according to international norms. First, the value-added tax, consumption tax and business tax applicable to domestic enterprises are directly applied to foreign-invested enterprises and foreign enterprises, so that domestic and foreign-funded enterprises can enjoy the same treatment in the collection of turnover tax. The second is to improve value-added tax as soon as possible. Appropriately expand the scope of tax collection of value-added tax, and change industries closely related to value-added tax such as construction and transportation into value-added tax; Realize the transformation of value-added tax, and change the "production" value-added tax into the internationally accepted "consumption" value-added tax; Standardize VAT deduction and eliminate double taxation. The third is to expand the scope of taxation of consumption tax, resource tax and other taxes.

Improve the income tax system and gradually integrate with the international community. The income tax system of domestic and foreign-funded enterprises should be merged as soon as possible. It is necessary to formulate a unified scope and standard of pre-tax expenses and unify the tax base. Appropriately reduce the income tax rate, and the two preferential tax rate policies focus on high-tech enterprises, agricultural investment enterprises, basic industries and social environmental protection enterprises. Appropriately increase the proportion of individual income tax, and reform and adjust the tax burden between declaration methods and tax items.

Levy social security tax as soon as possible to cooperate with the reform of social security systems such as enterprises, labor, personnel and medical care; Levy inheritance tax and gift tax to make up for the deficiency of personal income tax in regulating high income, regulate the distribution of social wealth and promote the realization of fair income distribution; Levy environmental tax and strengthen the role of economic means in environmental protection; Capital gains tax should be levied in time to regulate the asset trading behavior of enterprises.

Secondly, according to the international market, industry and technology orientation, adjust the current tax policy and establish a tax operation mechanism that is coordinated with international practices. First, adjust the thinking of preferential tax policies and strive to create a fair competitive market environment. With the economic globalization and China's entry into WTO, "national treatment" will be more popular. We should take this opportunity to standardize tax behavior and greatly reduce all kinds of tax relief. It is necessary to change the previous idea of "attracting foreign investment with preferential tax policies" to "attracting foreign investment by optimizing the investment environment". In accordance with international market rules, we will strive to improve government services as soon as possible, improve the functions of urban infrastructure, formulate policies and regulations in accordance with international standards and practices, enhance policy transparency, and create a fair competitive market environment for foreign investors. The second is to adjust and optimize tax policies in view of industry and technology orientation, cultivate and expand high-tech industries and enterprise groups, and improve their competitiveness in the international market. Most enterprises in China are small in scale, low in technology and too scattered in strength, so it is difficult to compete with foreign monopoly enterprises. Therefore, we should make full use of tax policy tools to cultivate and support high-tech enterprise groups, encourage their joint mergers and acquisitions, set up group companies, cultivate a number of high-tech enterprises with market-leading power, and make joint efforts to compete with large foreign companies in order to obtain the due share of Chinese enterprises in domestic and foreign markets.

Third, deepen the reform of tax collection and management, strengthen the modern management of tax collection, and establish a diversified, standardized and strict new pattern of tax collection and management with subjective consciousness, high-quality service, simplified procedures, advanced means, transparent law enforcement and clear rights and obligations. The current tax collection and management system in China has played a positive role in ensuring the national fiscal revenue and correctly implementing the tax policy. But on the whole, the quality of tax collection and management and the level of tax service are not high, and the ability to participate in international economic and tax activities is not strong. Under the background of economic globalization, especially China's accession to the WTO, the volume of import and export trade will increase, at the same time, the trade methods will become increasingly diversified, and the economic components will become increasingly diversified, which will pose a more severe challenge to China's tax collection and management. Therefore, in order to meet the requirements of economic globalization, we must deepen the reform of tax collection and management in accordance with international practices and learn from the experience and practices of advanced countries and regions. Specifically, the first is to simplify procedures, facilitate collection and management, and optimize services. Second, increase the transparency of administration according to law and the intensity of tax administration according to law, make the ways, means and procedures of tax enforcement in line with international standards, provide investors with clearer information and better services, form an efficient and civilized tax environment adapted to China's market economy, and give foreign investors confidence. The third is to speed up the modernization of tax collection and management, so that tax management can keep pace with economic internationalization and modernization. Strengthen the research and development of online tax collection and management system, realize the network operation of tax collection and management business, implement electronic declaration, online declaration and non-cash settlement, and improve the efficiency of tax collection and management. Fourth, establish and improve the tax judicial guarantee system, such as the establishment of tax police system and the establishment of special tax courts.

In addition, under the background of economic globalization, international economic activities will make China's tax administration more complicated. It will be more common for foreign-funded enterprises, especially some large multinational companies and consortia, to take advantage of the imperfect tax systems and low level of tax management in various countries to avoid taxes and transfer pricing. Online international trade and financial internationalization also bring many difficulties to tax administration. All these put forward higher requirements for tax collection and management, and are also topics that need further research in tax management in the future. There are many signs that tax competition, as the product of global adjustment of production relations by economic globalization, challenges the traditional tax system, and its essence is to adjust the tax interest relationship on a global scale through the differential effect of tax distribution. The governments of developed countries, mainly the United States, stimulate investment by reducing taxes, thereby increasing supply and strengthening the competition of transnational economic interests through taxation. Practice has also proved that governments can reduce the tax burden of taxpayers by reducing tax rates, increasing tax incentives and implementing tax havens, so as to attract international capital flows, promote the development of international trade, and then affect domestic industrial technology progress, industrial structure adjustment and regional economic development. It is true that the introduction of tax competition policies in various countries triggered by economic globalization has accelerated the adaptation of tax systems in various countries to economic globalization, promoted the integration of their tax systems with those in other countries, and kept the world economic interests relatively balanced in the rational flow of countries.