Abstract: The Third Plenary Session of the 20th Central Committee of CPC called for further comprehensive deepening of reforms to further liberate and develop productive forces. Deepening the reform of the tax sharing system is undoubtedly the key to developing new quality productive forces, solving development problems, and promoting sustained growth. The 30-year reform of the tax sharing system is a process of proactive adjustment of the fiscal system around the goal of liberating and developing productive forces, while the construction of a modern fiscal system requires it to further support the development of new quality productive forces. The distribution logic based on the Marxism view of the state, the method logic based on goal coordination and competition mechanism, and the standard logic of fairness and efficiency are the logical foundations for the tax sharing system to promote the development of new quality productive forces. The development of new quality productive forces requires continuous improvement of the tax sharing system in improving resource allocation efficiency, balancing fiscal functions, and stimulating local government enthusiasm. To this end, three major strategies are proposed to deepen the reform of the tax sharing system: optimizing the allocation of fiscal resources through the “allocation paradigm”and“transaction paradigm”, with the aim of strengthening resource coordination and competitive efficiency; adopting the fiscal management strategy of “evidence-based management” and “ratio indicators”, with the aim of introducing a mechanism for displaying fiscal functional preferences and improving budget performance; deepening the reform of fiscal revenue and expenditure division based on the principle of “benefit”, with the aim of standardizing fiscal operations and strengthening budget constraints.

Key words: tax sharing system, modern financial system, new quality productivity, logical analysis, strategy innovation