LV Bingyang, CHEN Zhigang：The Calculation of China’s Provincial Average Tax Rate of Capital, Labor and Consumption

Abstract：The labor, capital and consumption are the connotative tax bases, and it is very important to calculate the tax rate of tax base for macroeconomic studies. According to the Mendoza Formula, the paper particularly calculates the tax average rate of tax base on the basis of Chinas national economic accounting caliber and tax system. The study shows that the tax average rates of labor, capital and consumption are keeping increasing. Expanding the deduction scope of VAT(value-added tax)has little effect on average tax rates of consumption and capital. Because the transformation of VAT is not complete, business tax is collected too much on construction and real estate industry, income tax is collected repeatedly on capital, and the actual average rate of capital in China is not low. The average tax rate of consumption is slightly lower than those in EU countries which collect VAT, and Chinas average tax rate of labor is far lower than that in developed countries.

Key words： Average Tax Rate    Mendoza Formula    Tax System Reform

source:Finance & Trade Economics ,No.7,2015