Download The Fiscal Policy`s Comparisons Between Chinese and Western

EASTERN ACADEMIC FORUM
The Fiscal Policy’s Comparisons Between Chinese and Western
Countries -------According to the Constituting Mode
HOU Xiaoyan1
Enterprise Management Professional, Shanghai University of Engineering Science, China
Abstract: In this study is not talk about the Fiscal policy itself, but the constituting mode of Fiscal
policy criterion, the formulation of foundation, setting process, make comparison and research
institutions, and the developed countries such as Britain and America the constituting mode of
accounting criterion the international comparison, system discussed, and put forward how to perfect our
country's Fiscal policy establishing model of the proposal, and so as to provide the basis for our fiscal
policy, to make the contributions for our country, the perfection of the constituting mode of fiscal
policy.
Keywords: Fiscal policy, Constituting mode, Comparison with reference
With the rapid development of economy, the international economic exchanges increased, the
Multi-National Corporation globally appeared. The globalization of Finance and taxation can adapt to
the requirements of contemporary economic development and change, change the national taxation
diversification phenomenon, realize the international coordination and unity in the development of
Finance and taxation. In order to achieve this goal, first must carry on comparison of different national
and regional tax environment, system, practice, understanding the difference, carries on the thorough
analysis to influence the formation of various tax mode. Taxation of international harmonization and
unification of development carries on the thorough analysis to influence the formation of taxation mode
of all countries and produced, on this basis, and strive to achieve fiscal coordination within the
international scope, the tax is a kind of relations of production to adapt to contemporary international
economic development and change.
1 The Formulation of the Two, Foreign Tax Policy Comparison and Analysis
Model
This paper from the four aspects of system of fiscal policy making model. The transverse, longitudinal
comparison researches, expounds the features of fiscal and tax policy tax form formulation factors and
advantages and disadvantages of each one, and do a thorough evaluation, provide the basis for
developing model for China's fiscal policy.
1.1 Comparison and analysis of fiscal policy foundation
1.1.1 Comparison of main countries in the world finance and taxation policy making basis
Making the basic fiscal policy is the fiscal policy orientation. At present, the fiscal and taxation policy
guidance are the main principles and rules oriented two. Principle oriented fiscal policy, refers to the
fiscal targets for clear guidance to financial fiscal framework construct of the fiscal and taxation policy,
to maintain consistent derived logic; Rule oriented fiscal policy refers to no theory on the sound,
according to the characteristics of transactions and events as well as the needs of different periods of
time, the lack of implementation of standard internal consistency of a series of logic to develop.
The United States tax policy based evolution.
In 1937, by the inductive method and program committee of fiscal policy, fiscal and taxation policy is
mostly on tax practice summary, due to the lack of theoretical support, after exposure to various defects
1
Project name: 13KY0336 Research on regression real estate investment income under the perspective of basic
functions.
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of angelica, formulate fiscal and taxation policy, taxation program committee for property tax principles
board was forced to reshuffle.
Since 1973, research devoted to the conceptual framework, has issued a total of 7 concepts
announcement, established by fiscal targets as the logical starting point on the confirmation,
measurement and report of financial and taxation theory, using theoretical basis as fiscal and financial
reporting standards. Therefore, may say that fiscal policy is not a lack of theoretical foundation of the
United States of America.
But in the actual operation process, making the United States of America's fiscal policy but can't help to
the rule-based model. The United States of America from the change process of fiscal and tax policy can
be seen, principles and rules oriented is the two kinds of mentality to formulate fiscal and taxation
policies, is the basic form of the fiscal and taxation policy. China’s finance and taxation policy
foundation China's fiscal policy model belongs to the basic rule oriented, 38 specific fiscal policies
issued in 2006. Including the operating instructions, detailed limits standard and exceptions.
1.1.2 Formulated on the basis of analysis
(1) Analyzing the advantages and disadvantages of principles based
The guiding principles of fiscal policy by many discussions and recommendations, the utility model has
the advantages of: 1) Applicable principles guiding fiscal policy more widely, there are exceptions to the
principle and limit of less test; 2) Guide for interpretation and execution of less. The preparers and
auditors in dealing with business, finance and tax audit results expression more cautious; 3) Principle
oriented fiscal policy more flexible, can better adapt to economic matters the myriads of changes.
However, the principle oriented fiscal policy also inevitably has some shortcomings:
1) Principle oriented accounting standards provide only principle opinion, operation guide too little, so
the statements and auditors in the application of standards on economic matters related to judgment, lack
of judgment; 2) In the use of occupation judgment, may cause information can't be compared and
inconsistent.
(2) Analysis of the pros and cons of rules oriented
Fiscal policy of the United States has gradually deviated from the conceptual framework after years of
development. The criterion of the economic consequences of demand driven, as well as the game the
stakeholders, leading to the existing fiscal policy becomes a set of detailed and specific standards,
international called rules based fiscal policy. Advantages as the representative of the United States rules
guiding fiscal policy are:
1) Rules guiding fiscal policy for all possible economic transactions and events, followed by the detailed
provisions of the confirmation, measurement and disclosure of the specification, and strong operability,
low cost of implementation; 2) Because the specified limit exceptions and more numerous, so when the
company managers, auditors and regulators in the interests of the differences, to reach a relatively
consistent, thereby reducing the uncertainty and litigation, and to supervise the implementation; 3)
Guide for interpretation and execution of more, reduces the occupation judgment requirements, is
conducive to the improvement of fiscal information comparability and consistency.
1.2 Fiscal policy formulation and analysis program
1.2.1 Fiscal policy Comparison of fiscal policy
Fiscal policy formulation process refers to the finance and taxation policy project until the whole
process of the public release of. Standard setting procedure is equivalent to the production of a process;
procedure is reasonable or not will directly affect the quality of the products.
(1) The full program of the United States of America
1) Through fiscal policy advisory committee and other channels, to collect the finance and taxation
measure and report problems, screening, screening, determined in the financial fiscal policy commission
schedule projects; 2) Committee appointed some familiar with tax knowledge of people from finance
and industry composition research group, all of them are listed.
(2) The British tax policy making process
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British financial and tax policies procedures are as follows: 1) Fiscal policy researchers to write the first
draft; 2) To collect opinions from relevant agencies; 3) Was revised according to comments; 4) The
draft will be revised to fiscal policy related mechanism, again to listen; 5) Fiscal Policy Council made
the decision according to the modified opinion.
(3) Program to develop our criterion
China's fiscal policy formulation process is identified in the experience and practice of other developed
countries and international financial and taxation policy committee. On July 10, 2003, in the new
session of the Ministry of Finance Tax Policy Committee set up soon, the Ministry of Finance publicly
issued "fiscal policy program", the new program is divided into four stages: the project phase, the
drafting stage, public consultation and promulgation.
1.2.2 Analysis of fiscal policy and tax policy formulation process
The above introduction about fiscal policy, fiscal policy can be seen in today's world program shows
much in common, they cannot do without approval, solicit opinions and other sectors, this should be
attributed to the civilized society of fiscal policy formulation process of fiscal and tax policies for
theoretical guide. But the course of the modern financial development is not long, and is still in
development, so the current finance and taxation policy formulation process of careful analysis, there
are also differences.
Make public process inevitably affect the final product -- fiscal policy. Open problems in the process of
formulating financial policy, solve improper directly affects the final fiscal policy. Therefore, it is
necessary for us to formulate fiscal and taxation policies in the process, as a basic principle in public.
Each step of fiscal policy, as far as possible to disclose. To perfect our fiscal policy formulation process,
should ensure fiscal policy making process of openness principle, secondly in the fiscal and taxation
policy formulate specific procedures, absorbing foreign good practice to make up for the deficiencies.
1.3 Policy making comparison and analysis of mechanism
1.3.1 Comparison of fiscal and taxation policies in western countries and China to establish institutions
At present, the world making the fiscal policy more influential, particularly in the English speaking
countries, such as, the United States of America, Canada, Britain, Australia, New Zealand, the fiscal
policies of these countries making institutions were compared (see Table).
Table
The country
America
England
Manning
Composed of
7 full-time,
independent
high-tech
professionals
Consisting of 9
members, director of
technical department
chairman and
full-time staff, the
rest for part-time
staff
Independence
Independent
Authoritative
Canada
Australia
New Zealand
China
By 21
unpaid
volunteers
Composed of 30
staff, most of
personnel
engaged in
standards
Composed of
4 full-time
professionals,
12 volunteers
Fiscal policy
committee by
3 Professional
Committee
Semi independent
Not
independent
Not
independent
Not
independent
Not
independent
The British company
law provides the
legal guarantee of it
ARC has
set the
guidelines
position
The
implementation
of AARF
standards help
Company law
provides the
legal
guarantee of
it
Authoritative
Item compared
Authority
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EASTERN ACADEMIC FORUM
1.3.2 Fiscal policy making mechanism analysis
The national tax policy mechanism of the comparison, analysis essentially belongs to the supply model
of fiscal and tax policy. The mechanism for the allocation of rights to design effective for control. In
different control, fiscal policy right is assigned to different organizations. The government regulation
mode, fiscal and taxation policies by the government departments directly to formulate (China), some
appear to laws and regulations form (USA), is a top-down approach, the government has strong
independence, and after extensive discussion and consultation, finance and taxation policy making out
with the authority and effectiveness of the.
2 China's Fiscal Policy Advantages and Disadvantages Mode
2.1 China finance and taxation policy model of advantage
The measure of a standard model is reasonable, effective criteria should be whether this model has the
ability to generate fiscal policy and fair. Here the "ability" refers to the standard setters have funds
enough, that developed the taxation policy of high quality: "fiscal policy" justice is the fundamental
interests of the majority of fiscal and taxation policies, to interest protection in the market economy of
fiscal and taxation policies to avoid leaning to either side, justice should not be partial to the interests of
any party, including the national. China's fiscal policy formulation main advantage is to ensure
maximum efficiency, mandatory and seriousness is conducive to the effective implementation of. In this
formulation, the participation of government finance and taxation policy of specific formulation, the
mode of supply of the market acceptance of the test of continuous improvement, supply mode is flexible
and fast, in this model, fiscal policymakers not easily affected by the interest group, this kind of
influence can be fully game, also not easy this system produced positive interference effect. In today's
rapid economic development, China's fiscal policy model related procedures are becoming more perfect,
constantly in line with international standards at the same time, continue to explore suitable for their
own development model.
2.2 Lack of China's fiscal policy model
The biggest advantage of China's tax policy model is can speed up the fiscal policy, improve the
efficiency of fiscal and taxation policy, bring some defects but this more simplified procedures for the
development of China's fiscal policy. Through years of work experience, combined with a large number
of references, analysis of China's fiscal policy status, and put forward relevant proposals. At the same
time, the participation of government finance and taxation policy of specific formulation, the supply
mode and cannot fully accept the market test and improvement, supply mode is clumsy and slow; Fiscal
policy is still relatively weak, is still lack of theory guidance; Fiscal policy making model without
explicit formulation method, fiscal and taxation policy quality setting mode is relatively low; Fiscal
policy related professionals on the less, comprehensive quality of personnel is not high.
3 Improvements of Chinese Fiscal Policy Implications
Through the comparison and analysis of several main aspects of the above, it can be used for reference
by China finance and taxation policy mode, and can bring the following enlightenment:
First, good setting mode of fiscal policy is a precondition to "high quality" fiscal policy. National tax
policy mode selection will be restricted by certain tax environment, so it is impossible to take exactly
the same pattern. Our country should pay attention to fiscal policy study and comparison of different
pattern, takes its essence, goes to its dregs, to establish a suitable for our national conditions and
characteristics, to maintain fiscal policy international advanced formulation mode.
Second, good setting mode of fiscal policy is not lump together, but it is nothing more than the
following three points: the appropriate standards, quality standards and adequate standards program. (1)
The appropriate standards setting bodies cannot simply to "public" or "private" as the evaluation
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standard, but it should be suitable for the taxation of its environment, and can maintain the interests of
the overwhelming majority, so its representative shall have the extensive and relatively independent; (2)
The high-quality standards personnel refers to their integrity, independent and fair character, profound
financial and taxation knowledge, diligent working attitude, dedicated professionalism, most of them
should be full-time financial and tax experts.
Third, "fiscal criteria for high quality" also must be established on the basis of accounting theory and
financial accounting conceptual framework, so as to ensure the criterion between internally consistent
and consistent. The United States and other western countries have successively established tax
standards "perfect conceptual framework", China's "corporate finance and taxation standards" for China
to develop a conceptual framework of "established a good foundation", we need to do is, to further
enrich the taxation standards for enterprises.
Fourth, in the process of international coordination of fiscal and tax policy, we can't have thought the
whole transplantation, be wary of the new situation, make a concrete analysis of concrete problems, give
full consideration to the special nature of our economic development during the transition period, active
participation in international coordination of fiscal and tax policy, strengthening the Fiscal Policy
Council and the international communication, absorption to study the special problems of Chinese
special committee set up its professional staff and china. The measure can solve the contradiction
between the internationalization and nationalization of fiscal policy.
As a conclusion, in order to improve the quality of fiscal policy, we should do lots of things, include
comparison and analysis, only in this way can we do much more contributions for our country.
Acknowledgment:
Management: Enterprise management professional
School: Shanghai University of Engineering Science
Phone: 13564017216
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