In order to realize the above functions of tax distribution in economic development, we must correctly grasp and understand the principles of tax distribution. The principle of tax sharing is the criterion for correctly handling the tax sharing system, which requires both fairness and efficiency, and is dissolved in the process of tax sharing.

(A) the principle of fairness in tax distribution

In tax distribution, the tax system should be fair, and every taxpayer should bear his reasonable share of government expenditure. Under this principle, there are two distribution principles:

The first is the benefit principle.

Every taxpayer pays taxes according to the benefits he gets from financial expenditure: whoever benefits will pay taxes and whoever benefits will pay more taxes. According to this principle, the tax structure depends on the fiscal expenditure structure, but the catch-up principle only applies to some taxes, because in reality, every taxpayer does not fully know the benefits brought by fiscal expenditure. Therefore, although we try our best to embody the benefit principle when determining taxes in reality, there are not many taxes that are really designed according to the benefit principle. At present, there are mainly vehicle and vessel use tax and urban construction tax.

The second is the principle of ability to pay taxes.

This principle does not consider the structure of fiscal expenditure, and requires each taxpayer to pay taxes according to his own ability to pay taxes. When determining the tax burden, both horizontal fairness and vertical fairness are required. Horizontal fairness means that people with the same income should pay the same tax regardless of the nature of the source of income. From the practice of tax distribution at all levels, due to the influence of other necessary tax reduction and exemption policies, horizontal fairness is difficult to achieve.

Vertical equity means that people with different economic conditions and tax paying ability should bear different taxes. People with strong ability to pay taxes pay more than those with weak ability to pay taxes. The difficulty in implementing this principle lies in how to distinguish this quantity and how to delimit and define the scope.

(B) the principle of efficiency of tax distribution

The goal of tax distribution should contribute to the growth and stability of the national economy and realize the goal of seeking development through stability. Its starting point is to protect the national economy, avoid the negative impact of taxation on economic development, and further promote the efficiency of the national economy. This principle has three requirements.

First, it is required to protect the tax base, that is, to protect industry and productivity and strive to promote their development, so as to develop the national economy, expand tax sources and increase taxes. This protection is embodied in the selection of tax targets, the determination of tax types and the design of tax rates.

The second is to improve efficiency, that is, on the one hand, to maintain tax neutrality, try not to interfere with the equilibrium of market prices, and to maintain relative neutrality in the market system; On the other hand, when there are defects in the market mechanism, taxation should be non-neutral, that is, it must give full play to the economic leverage of taxation, so that it can devote itself to promoting fair competition among enterprises in the same environment, restoring the normal function of the market mechanism and promoting the coordinated development of the national economy.

Third, it is required to improve the efficiency of resource allocation, so that socialist tax distribution must be conducive to improving resource allocation and making the most effective use of scarce economic resources. In order to ensure the combination of fiscal revenue and production promotion, national construction funds need to be combined with the ability burden of taxpayers, and different taxpayers should be treated differently, so that the role of socialist tax distribution in economic development can be played most effectively.

Tax distribution refers to the relationship between tax authorities at all levels and taxpayers. The former constitutes a problem of tax management system, while the latter constitutes an important part of tax collection and management.

Tax distribution participates in the redistribution of national income from many links, and tax distribution regulates many links of national income distribution, making tax distribution an organic part of the national income distribution system.

In the process of commodity value realization and income formation, the tax object is mainly goods and services, and the tax basis is mainly the turnover of goods and services or the sales of goods. The corresponding related taxes are called value-added tax, turnover tax or goods and services tax. Taxes levied on realized income distribution are generally manifested as various income taxes; In the revenue and expenditure link, taxes are manifested as various consumption taxes and behavior taxes.