Abstract
In this paper we study the government’s taxation policy of agriculture and non-agriculture in the process of development. We assume the development of an economy is inevitable, and take the growth rate of technology as exogenous. We consider a two-sector model. One sector is the agricultural sector with modern technology while the other is the non-agricultural sector. Our conclusion is this: When the economy is underdevelopment with low productivity, the government should impose a very low tax rate on the non-agricultural sector, the major income of the government should come from the agriculture. As the economy develops, we should impose higher tax rate on the non-agricultural sector, lower taxation on the agricultural sector. And eventually when the productivity reaches a certain level we should give subsidizations to the agricultural sector. This result consists with the recent policy of China: in the process of development, we should alleviate the burden of the agriculture.
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论文题目：
Government’s Policy on Taxation in the Process of Development 
