지방세 조례감면의 지방자치단체 재정수입에 대한 한계효과 분석

Abstract

This paper analyzes the effects of tax deduction through local ordinances on total revenue and examines the correlation between the marginal effects and tax deduction rate. When local governments reduce local tax revenues through tax deduction by local ordinance, total fiscal revenues are changed because various intergovernmental grants such as adjustment grants and local share tax are altered. The marginal effects are as follows. First, metropolitan local governments offset a portion of the ordinance tax deduction with a decrease in adjustment grant and collection grant revenue, but local share tax decreases due to an increase in standard fiscal revenue from the self-effort category. Second, although the adjustment grant rate in provinces is relatively larger than that of special and metropolitan cities, the decrease in general adjustment grants and collection grants is reflected in the decrease in standard fiscal demand which leads to the decrease in total fiscal revenue being larger than that of special and metropolitan cities. Third, in the case of city and county governments that receive local share tax, the local share tax decreases due to the ordinance tax deduction, so the total revenue decreases more than that of divisions which do not receive local share taxes. Fourth, the marginal effect of the ordinance tax deduction for self-governing administrative regions on the total revenue is significantly different due to the difference in the method of allocating the general adjustment grant. Finally, The evidence using the 2021 fiscal year-end data on the hypothesis that the larger the marginal effect of tax deduction by local ordinance, the higher the rate of tax deduction is not strong. This raises the need for empirical analysis through panel data by extending the time series.