Research on the Interference Trend of National Taxation with Price and Inflation

In view of the objective reality that the market prices stay high in recent years, inflation which continues to rise is not effectively inhibited, combined with the previous economic circles who attributed the reasons to inflation for commodity supply and demand, the issuance of money and neglect the role of tax factors led to national governance inflation decision-making that is limited by the phenomenon. By means of comparative analysis, Granger causality analysis and Augmented Dickey-Fuller test, we dissect the external disturbance and endogenous factors of influencing inflation, select the 2001-2016 tax index and CPI index and make an empirical research of the interference from government taxation to price and inflation trends and strength. It is approved there is single causal relationship between tax and price rising, and sums up that government taxation can promote inflation, but inflation can’t lead to tax rising. Of course, this conclusion can also provide theoretical support for national governance of inflation.