This paper analyzes the effects of the Repeal Plan of Earmarked Taxes in the 2008 Tax Changes Plan. First, this repeal plan is expected to make the structure of tax revenue and the tax codes simple. Second, it is unlikely to make the national finance management more efficient. Third, it is forecasted that the repeal plan will reduce more or less the financial stability to the areas the budget from the earmarked taxes have covered.

In conclusion, this paper generally agrees to the repeal plan with reasons followed. Earmarked taxes would be obstacles to reasonable deliberation on a draft budget. It has also made the tax codes more complicated and caused unnecessary tax administration costs. Moreover, it is emphasized that the administration should take measure to reconstruct a fiscal allocation system between the central and local governments which is inevitable to change for realizing the repeal plan of earmarked taxes.