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Game Analysis of Local Taxation and the Reform of Taxing System

LIANG Xiao-qing(Jingchu University of Technology,Jingmen,Hubei,448000,China)  
Tax rates play a core role in impacting competitiveness of the local economy.One important means for the local government to invite foreign investment is to adopt a low tax rate,so as to strengthen the resource flow in the region and activate the economic activities.A vicious cycle will form,however,when local governments all come up to this resort.The paper gives a game analysis of the local taxation,and proposes some ways to reform the system.
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