From the point of view of a legal researcher, there are some problems more important, the local government s power and its efficiency, the protection of the private rights, the favorable measures for the investment and the coordinated development of the society and the nature.

The preferencial means of business income tax are mainly realized in two forms:direct preferences and indirect preferences.

Tax revenue preferencial policy is one important part of tax competition, Kinds of tax revenue preterence s way should run under certain tax principle,these principles should including: following WTO regulation;stimulating technology progress; promoting labor employment ; showing industrial policy; selecting excellent &poor ; laying equal stress on direct preference and indirect preference.

Some practices such as indirect preference,consume type appreciation tax,industry preference and legalization have been proved to be effective.

During the course of“Tenth Five-year", the tax preferential policy on high-tech industry should pay more attention to indirect preference and industry preference, reform the pattern of value-added tax, and enhance tax preference to individual investing to high-tech industry.