A prominent tax policy expert in China has proposed that the country's tax flows should reflect a familial structure, where the central government acts like a father, providing financial sustenance to local governments, which he likens to children. This viewpoint emphasizes the need for revenue-sharing reforms that are included in China’s new five-year plan. The expert argues that these reforms could relieve the fiscal pressures that local governments currently face while ensuring that the central government retains its primary role in managing the nation's finances.

The expert, Zhang Lianqi, highlights that China operates as a unitary state, which grants it a significant advantage in efficiently coordinating fiscal resources. He contrasts this system with the fiscally federalist model of the United States, where states have more financial autonomy. By redistributing financial resources through transfer payments, the central government can maintain a level of control over local finances, thus demonstrating its crucial role in the economic structure of the country.

Zhang's assertions come at a time when local governments in China are experiencing increased financial strains, partly due to rising debt levels and decreased revenue sources. The implementation of the proposed taxation reforms is seen as a necessary step to strengthen local governments' fiscal stability, enabling them to better serve their regional populations while ensuring that the central government continues to oversee the broader economic landscape of China.