Abstract: The local tax rights is not only related to national and social stability, but also conducive to the healthyfunctioning local government authorities. To devide tax power scientific and normative, it should strive to combinethe central right diligently leading with moderate local power. It means the division of tax power should take fullaccount of the power demand and financial expenditure of local governments. To wisely and rationally choose amain local tax category，we should reform and adjust the local secondary tax categories, and promote the publicfinancial system for public service equalization, give local society tax power and set up the tax revenue harmoniz-ing committee for guiding competition and cooperation. We should make a legal system for regulating the tax rev-enue competition between governments so that the positive result of the tax revenue competition will be guaranteedand the wicked tax revenue competition will be prevented．

Key words: Local Tax Power, Allocation of Tax Power, Constitutional Government, Decentralization