Tax Theory And Policy To Promote Technological Progress

The purpose of this article is to research into the stimulating mechanism of tax policy of technical change and the effect of the tax policy on the basis of synthesizing the study results of predecessors. Comparing the tax policy on stimulating technical change in various nations under the tendency of the intellectual economy and the economic globalization, the article analyses and criticizes the tax policy of technical change in China, and put forward the train of thought how to adjust the policy.It includes six chapters and twenty-one sections.Chapter one reviews theoretical analysis in the western economic growth theory about the role of technical change in economic growth. It explains the implication in the conception of the economic growth and the technical change. The technical change is the foundation of the economic growth pattern in a nation, it raises the technical level in manufacture machine, improves the processing of production, advances the quality of labour force and the ability of organizing management and decision on social production. It is the main force to promote the escalation and the adjustment of industrial structure. There is inevitably relationship between the development of technical change and the formation of economic cycle.Chapter two focuses on researching the mechanism of enterprise technical change for the purposes of inquiring the general rule of the enterprise technical change and finding the various factors on affecting the process of it. The development goal of the social economy, market system, social demand, the storage of scientific technology and knowledge, all of them are main factors on influencing the enterprise technical change.The characters of enterprise technical change are the innovation and the uncertainty, which determine that the enterprise technical change becomes the activity of high investment and high risk. The uncertainty gives signs of technical risk, market risk and finance risk in the process of enterprise technical change when it is linked with technology, market and finance.After theoretical preparation in the first two chapters of the article, chapter three begins to discuss and analyze the theory and policy of tax on stimulating technical change.The playing role and implementing policy of government is related to the economic function of government. Government can aimedly draft tax policy to express the governmental support to the development of some industries, some technologies and regions According to industrial policy, science and technology policy and regional policy. The tax policy has the policy-guiding function in promoting enterprise technical change, it can effect the cost and income of enterprise technical change, reduce the risk of enterprise technical change. In the same time, technical change brings a great deal of the effects on the tax ideas and principles, the tax systems and policy, the structure of tax resource and the administration of taxation.Chapter four studies the effectiveness of tax policy on technical change. The investment on technical change by enterprise is the key factor for enterprise to make technological progress, which includes the advanced technology and equipment invest, the research and development invest, the human capital invest. For this reason, the analysis on the effectiveness of tax policyfocuses on its effects on enterprise investment. The types of method used to evaluate the effectiveness of tax policy mainly include the investment model, the production structure model and the general equilibrium model. This article use the formula of real virtual profit in the Q theory model of invest to study the effects of taxation on the invest ability of enterprise. There are two kinds of the effects of taxation on the invest decision of enterprise. In one hand, the result of taxation on marginal invest income is to restrain the enterprise invest by cutting down marginal invest income. Another hand, for some enterprises the marginal invest income will be raised by the tax incentive under condi...