Fiscal Basics / Third Edition

Author: Chief Editor: Liu Tongxu
Publisher:
Publish Date: 1998-07-01
Features: Excerpt:
(II) Fiscal distribution is led by the state. The various subjects of social reproduction are positioned at certain levels and form certain distribution relationships with each other. The subjects constituting the fiscal distribution relationship also coexist in a contradictory framework with specific statuses. The state always maintains a dominant position in fiscal distribution, while other distribution subjects remain subordinate. Regardless of the type of state, it appears in fiscal distribution as the representative of supreme power, obtaining a certain amount of surplus product through participating in the distribution of social products. Therefore, in fiscal distribution, the state holds the dominant position. The purpose, direction, scope, quantity, and timing of fiscal distribution must all reflect the state's will. Thus, fiscal distribution is state-led, which is the fundamental distinction between it and other forms of distribution. In the distribution relationships between the state and all parties, although the state holds the dominant position, it cannot arbitrarily abuse its power. Fiscal distribution relationship is part of the production relationship. The fiscal distribution relationship must adapt to the requirements of productive forces and must exercise its dominant role within the scope of objective economic laws. In the distribution activities between the state and all parties, if the state violates objective economic laws and arbitrarily exerts its dominant position, such as imposing taxes beyond the taxpayers' capacity or engaging in extravagant expenditures, these actions will inevitably be punished by objective economic laws. Of course, if the other party in the fiscal distribution relationship does not recognize the state's dominant position and disregards state fiscal power, it will also face legal sanctions.
(III) Fiscal distribution is based on state power. Since fiscal distribution is intended to meet the public needs represented by the state and is a state-led distribution relationship, the state, in its capacity as a social manager, first employs state political power in the realization of fiscal distribution. The exercise of state political power includes three aspects: legislative power, executive power, and judicial power. The state stipulates the basic power to tax in the fundamental law. In specific laws, it regulates various fiscal collection and expenditure regulations, as well as the procedures for collection. Based on the power granted by state laws, state fiscal agencies implement fiscal collection and payment to enterprises and residents and impose administrative penalties on those who violate fiscal regulations. State judicial authorities, on the other hand, impose legal sanctions on residents and entities that violate fiscal regulations. The fiscal collection by the state based on political power is often characterized by compulsion and non-reimbursement. For example, in taxation, the state typically collects taxes based on law, regardless of whether taxpayers are willing, and the taxes are not directly returned to individual taxpayers. In addition to political power, the state also possesses property power. As the owner of property, the state implements the compensated use of state-owned assets based on its right of possession over productive materials: collecting usage fees, rental fees, and interest dividends. When the state participates in distribution through property power, it forms a contractual relationship with the parties involved. Through legislation, it specifies which property belongs to the state and the procedures and methods for the compensated use of state-owned assets. The state also participates in distribution as a subject of commodity exchange, in the form of credit. As a creditor, the state must charge interest to transfer the use of its goods; as a debtor, the state temporarily obtains the use of goods by paying interest as the exchange value. State credit is not conducted in isolation; it is backed by property power. The economic strength of the state is the material foundation of its credit.