Chinese Journal of Sociology ›› 2012, Vol. 32 ›› Issue (6): 86-107.

• Articles • Previous Articles     Next Articles

Macro-Tax Burden, Public Expenditure Structure and People’s Subjective WellBeing: On the Chinese Government Transformation

  

  1. Author 1:XIE Shun,College of Public Management，Guangxi University； Author 2:WEI Wanqing,College of Public Management，Guangxi University.  E-mail： weiwq20050908@163.com； Author 3: ZHOU Shaojun，School of Public Finance and Taxation, Guangdong University of Business Studies
  • Online:2012-11-20 Published:2012-11-20
  • Contact: WEI Wanqing,College of Public Management，Guangxi University. E-mail: weiwq20050908@163.com. E-mail:weiwq20050908@163.com.
  • Supported by:

    This paper was funded by the project of Guangxi University: “Government Transformation Research in Perspective of Legitimacy”.

Abstract:

People’s subjective wellbeing (SWB) is a key indicator when evaluating whether social and economic policies are successful or not. The open policy and reform have been in practice for more than 30 years now, China’s economy has sustained rapid growth, and people’s incomes are on continuous rise. Economic growth is supposed to enhance the SWB of people. However, people do not feel the expected happiness due to many social phenomena of the transition period. That economic development and citizen’s SWB are not related, and even reversely related, is a common problem in the current urban economic and social development in China. A meaningful topic worth discussion is how the government can promote SWB of its people. With the national data from CGSS2006 of the macrotax burden, public expenditure, local governments’ revenue disparities, and people’s SWB, this study empirically tested their relationships. It was found that: (1) macrotax burden had a significant negative impact on people’s SWB; (2) overall, public spending was positive correlated with SWB; (3) in the area of public spending, local governments’ infrastructural investment negative correlated with SWB, whereas their investments in science, education and social security positively correlated with SWB; and (4) expenditures on science, education and social security had different impact on the SWB of the local citizens and nonlocal residents. Based on these empirical findings, regulating governments’ expenditure and infrastructural investment, exercising structural tax reduction, and increasing the proportion of the public expenditure would be highly important to narrowing income gaps and improving people’s satisfaction of life. It would be necessary to push the government to be transformed into the government oriented toward public service.

Key words: macro-tax burden, government transformation, public expenditure, subjective well-being (SWB)