Abstract: Building a high-standard socialist market economy in all respects is an important reform goal made clear at the Third Plenary Session of the 20th CPC Central Committee, which highlights the importance of further deepening the reforms in all respects in the new journey, with the reform of the economic system as the leading force. Xi Jinping’s economic thought, especially the related exposition on the socialist market economic system, is the basic guideline for comprehending the profound connotation of building a high-standard socialist market economic system in all respects. The profound connotation should be grasped at five aspects: first, insisting on the decisive role of the market in resource allocation; second, insisting on the close integration of the socialist system with the market economy; third, insisting on the construction of a socialist market economic system supported by the institutions; fourth, insisting on the establishment of a high-standard socialist market economic system; and fifth, insisting on the completion of a comprehensive high-standard socialist market economic system. In the practical path, the fiscal and tax system is a key basic system for the socialist market economy, therefore, a new deployment of fiscal and taxation system reform is needed from the three aspects: the budget system, the tax system, and the relationship between the central and local finances to improve the macroeconomic regulation and optimize government governance, so as to contribute to the building of a high-standard socialist market economy in all respects.

Key words: socialist market economy system, reform of the financial and tax system, budget system, tax system