<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

Exploration of financial tax system in the context of big data

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Exploration of financial tax system in the context of big data"}

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...

Exploration of financial tax system in the context of big data

Published Online: Dec 23, 2023

Page range: -

Received: Jan 25, 2023

Accepted: Jul 03, 2023

DOI: https://doi.org/10.2478/amns.2023.2.01589

Keywords
Structural Equation, Bayesian, Parameter Estimation, Cronbach’s Coefficient, Financial Taxation System

© 2023 Ning Ji, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Exploration of financial tax system in the context of big data

Published Online: Dec 23, 2023

Page range: -

Received: Jan 25, 2023

Accepted: Jul 03, 2023

DOI: https://doi.org/10.2478/amns.2023.2.01589

KeywordsStructural Equation, Bayesian, Parameter Estimation, Cronbach’s Coefficient, Financial Taxation System

© 2023 Ning Ji, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Structural Equation, Bayesian, Parameter Estimation, Cronbach’s Coefficient, Financial Taxation System