Positively Explaining the Riddle of Tax-exceeding-GDP Growth

This article studies the reasons of tax-exceeding-GDP growth by positive analysis.Since the tax-sharing reform,tax collection efficiency of various provinces in China has been improved at an average annual rate of 9.6% with the robust growth mainly taking place in the eastern provinces.The growth elasticity of total tax revenue to GDP is 1.1,and growths in value-added of industrial and commercial enterprises,profits of enterprises and returns to employee have boosted,in different degrees,increases in relevant taxes.The growth elasticity of total tax revenue to tax collection efficiency roughly totals 0.43,and growth in the latter has increased tax growth rate by 4.1%,annually.Besides,implications of tax collection efficiency on tax growth center on value-added tax and income tax.