Reform of China’s taxation system: from embedment in the economy to embedment in society

Abstract To match national development goals and increase in the tax base, government must embed a taxation system economic social contexts. Since founding of People's Republic China, can be divided into three stages: one that is embedded danwei , enterprises, society. The corresponding include stimulating growth, promoting coordinated development, propelling state governance. As base China shifts from production to redistribution wealth accumulation circulation income, will gradually shift embedment economy society, posing new challenges reform. Future reform should deepen extent which society while keeping broad base. This help achieve goal building “consensually strong state.”