Tax practice has proved that under the condition of market economy, the more the economy develops, the more important the tax is. The close relationship between taxation and economy is manifested in two aspects: the economy determines taxation and the reaction of taxation to the economy.

The economy determines taxes, which is the premise. Economy is the foundation of the existence and development of tax revenue. The breadth and depth of economic development determines the scope and degree of tax distribution, and fundamentally determines the emergence, development and replacement of new taxes. The development and prosperity of commodity production and trade makes commodity taxation possible, and the development of transnational economy promotes the international extension of tax distribution scope, and international taxation also comes into being and develops. Moreover, the composition of different taxes and the choice of different tax systems are also largely restricted by the level of economic development. Nowadays, the globalization trend of economic development is accelerating day by day, and the knowledge economy is developing rapidly, which undoubtedly indicates that the tax system will face new innovation and development with the economic development.

Taxation depends on the economy, which is only one aspect. From the perspective of tax research, it is more important on the other hand, that is, the negative effect of tax on economy. With the increase of the breadth and depth of tax distribution, the function of tax is also expanding, and the influence and role of tax on economy is also expanding. This is mainly manifested in the continuous improvement of the financial position of taxation and the increasing macro-control role of taxation on the economy. Because of this, with the development of economy, tax has been paid more and more attention by governments all over the world.

It can be seen that the economy determines taxes, and taxes react on the economy. There is a dialectical relationship of interdependence, mutual influence and mutual promotion between them. However, this relationship will not automatically take effect under any conditions, socio-economic system and economic operation mode. Only under a certain social and economic system, especially under a certain economic operation mode, can the two have a benign interactive relationship.

Second, what is the function of taxation?

Tax function refers to the inherent function of tax, and tax function is the concrete embodiment of tax function under certain conditions. The function of taxation is mainly manifested in the following aspects:

Taxation is the main source of fiscal revenue. Organizing fiscal revenue is the basic function of taxation. Taxation is compulsory, free and fixed, and the fiscal revenue raised is stable and reliable. This feature of taxation makes it the basic form of fiscal revenue for government organizations all over the world. At present, China's tax revenue accounts for more than 90% of the national fiscal revenue.

Taxation is an important means to regulate economic operation. The economy determines taxes, and taxes react on the economy. This not only shows that the economy is the source of tax revenue, but also shows the regulatory role of tax revenue on the economy. As an economic lever, tax affects the economic interests of social members, guides the economic behavior of enterprises and individuals, and affects the allocation of resources and social and economic development through tax increase, tax reduction and exemption, thus achieving the purpose of regulating economic operation. The government can adjust the macro-economic aggregate and economic structure through taxation.

Taxation is an important tool to adjust income distribution. Generally speaking, taxation, as the most important and standardized form of national income distribution, can adjust the distribution relationship among government, enterprises and individuals. Different taxes play different roles in the distribution field. For example, personal income tax is taxed at an excessive progressive rate, which has the characteristics of high tax rate for high-income earners and low tax rate or no tax for low-income earners, which helps to regulate personal income distribution and promote social equity. Consumption tax levies on specific consumer goods, which can achieve the purpose of regulating income distribution and guiding consumption.

Taxation also has the function of supervising economic activities. Taxation involves all fields of social production, circulation, distribution and consumption, and can comprehensively reflect the quality and efficiency of national economic operation. Not only can we grasp the trend of macroeconomic development in time through the increase or decrease of tax revenue and the change of tax sources, but we can also understand the microeconomic situation in tax collection and management activities, find and correct the problems existing in taxpayers' production, operation and financial management, and promote the sustained and healthy development of the national economy.

In addition, tax jurisdiction is an integral part of national sovereignty and an important embodiment of national rights and interests, so taxation also plays an important role in safeguarding national rights and interests in foreign exchanges.

legal ground

Tax collection management law

first

This Law is formulated in order to strengthen the administration of tax collection, standardize tax collection, safeguard national tax revenue, protect the legitimate rights and interests of taxpayers and promote economic and social development.

second

This law is applicable to the collection and management of various taxes collected by tax authorities according to law.