Abstract:

Having considered the central government’s revenue of the shared taxes in China’s financial system, this paper conducts a research on the relationship between the tax burden and the economic growth in Fujian province by using the Theil index to empirically analyze the tax burden and the economic growth in Fujian province based on the local GDP data and tax revenues since the year of 1994. The results show that the tax burden in Fujian province is rising and the small and medium calibers of the tax burden are still within the affordable range of the economic growth and their negative impacts are comparatively small. However, there are obvious imbalances in the regional structure of the tax burden and the economic growth. The regional economic restructuring shall be relied on to harmonize the imbalances.

Key words: tax burden, economic growth, Theil index, regional imbalances of tax burden