Exploration of financial tax system in the context of big data

Abstract

The financial tax system is related to the actual effectiveness of a country’s modernized economic development and has a close relationship with the country’s economic enhancement. To examine the causal effects between potential variables in the tax system, this paper constructs a measurement model of financial tax system variables using Bayesian structural equations. Parameter estimation for SEM is completed by adding prior information to the sample data and calculating the posterior distribution of relevant parameters using Bayes’ theorem. The correlation between financial taxation and economic development is calculated to indicate whether there is consistency in financial taxation on economic efficiency. Cronbach’s coefficient is used to measure the degree of consistency and stability of each part of the financial tax index system. The results show that the impact value of personal tax is 0.71, 0.37 and 4.18 in provinces C, A and B. Promoting economic development in provinces and municipalities with a better degree of economic development is aided by the current personal income tax sharing ratio. Reducing the proportion of indirect taxes while keeping the macro tax burden unchanged results in a gradual increase of the proportion of personal income tax in total tax revenue from 8.7% to 18.7%. The research in this paper further improves the financial tax system and provides an effective method to improve economic efficiency.