Study On The Mechanism And Effect Of Enterprise Tax Burden On Enterprise Behavior

At present,China is facing a complicated economic situation at home and abroad.Specifically,the global economy is still in a difficult recovery,while the domestic economy remains weak.As the power source of economic growth and the main creator of social wealth,undoubtedly,enterprises play a very significant role with the development of society and economy.The tax burden attached to wealth,however,touches the "pain point" of most enterprises' development,and arouses the attention of the whole society.In recent years,there has been a heated debate among all fields of society on enterprise tax burden.From the version of whether Chinese enterprises' s tax burden is 35% higher than that of the United States to the debate on "death tax rate",all sectors have shown their concern and attention to the hot issue of enterprise tax burden.For our country,more than 90% of the tax revenue is directly provided by enterprises,coupled with the impact of economic downturn,making the development of enterprises facing unprecedented risks and challenges,which may further increase the sensitivity of enterprises to tax burden,thus causing the distortion of enterprise behavior,which affects the government's regulating effect as well.However,the existing theoretical and empirical studies fail to provide a systematic and comprehensive explanation that interpret the relationship between enterprise tax burden and enterprise behavior together with their functionary mechanism.Therefore,this study focuses on the mechanism and effect of tax burden on enterprise behavior,chooses three kinds of enterprise behavior,which including financialization behavior,innovative R&D behavior and environmental protection behavior that correspond to the current economic environment,attempting to explore the mechanism of tax burden and enterprise behavior together with their induced effects.This paper mainly answers the following questions: Is tax burden an important factor that affecting the enterprise behavior? Influenced by the heterogeneity of enterprises,does the relationship between them remain stable? For the three types of enterprise behaviors with different economic attributes,is the impact of enterprise tax burden on different enterprise behaviors consistent? In the case of poor operating conditions of enterprises in the real economy,could the tax burden become an important factor that impels enterprises in real economy to enter the financial investment field? Under the guidance of high-quality economic development,innovation-driven has been placed in an exceptionally prominent position.In such conditions,will tax burden weaken the internal incentives for innovative R&D in micro-enterprises? In the new era of Socialism with Chinese Characteristics,it can't be neglected that the old development path of "administration after the contamination" needs to be changed,and how does enterprise tax burden affect enterpirse's environmental protection behavior? In addition,how to optimize tax burden,so as to effectively improve enterprise behavior and enhance the regulatory effect of taxation.Therefore,firstly,this paper expounds the definition of enterprise tax burden and enterprise behavior,then analyses the functionary mechanism of enterprise tax burden on enterprise behavior.Secondly,it carries on statistical analysis of enterprise tax burden and enterprise behavior in our country.Thirdly,it makes an empirical study on the effect of enterprise tax burden on enterprise behavior.Finally,it puts forward some suggestions on optimizing tax burden to regulate enterprise behavior.To be specific,this paper defines enterprise tax burden and enterprise behavior in theory,reveals the mechanism of enterprise tax burden on different types of enterprise behaviors.Based on thorough analysis of the overall layout and heterogeneous characteristics of enterprise tax burden together with enterprise behavior,it clarifies the representation of enterprise behavior behind differentiated tax burden,excavates the behaviors and structural changes of enterprise tax burden at the empirical level,then explores the effect of enterprise tax burden on enterprise behavior.Moreover,it extracts the general law,then opens the "black box" of tax burden's effect on behavior,so as to provide theoretical basis and empirical evidence for optimizing the allocation of tax burden among different economies and futher improving enterprise behavior.Concerning the mechanism,clarifying the mechanism of enterprise tax burden affecting its behavior is a prerequisite for exploring the effect between them at the empirical level.From the perspective of financialization,the tax burden that enterprise bearing not only shakes the earnings and profit retention of enterprise,affects the cash flow in production and operation activities,but also changes the investment direction together with the expectation of marginal revenue and marginal cost.Moreover,guiding capital from the "high burden-low return expectation" field to "low burden-high return expectation" field in order to seek profit compensation,thus increase investment in financial assets.From the perspective of innovative R&D behavior,the mechanism of enterprise tax burden on innovative R&D behavior mainly includes: firstly,it leads to the expansion effect of enterprise cost and then reduces its earnings;secondly,it strengthens the restraint of enterprise cash flow.The overlapping effect will magnify the innovation risk to a certain extent,and forms a restraining effect on innovative R&D behavior,thus guiding enterprise to adjust its behavior to reduce risk.As far as environmental protection behavior is concerned,as a non-economic enterprise behavior,environmental protection does not aim at pursuing material gain.However,in the trade-off between economic behavior and non-economic behavior,enterprises usually give greater weight to economic investment and production activities,while as the environmental protection behavior that produces positive externality,it shows compliance flexibility to a certain extent.The rigid expenditure attributes of tax burden also transmit pressure to the enterprise finance,forming the crowding-out effect on environmental protection behavior.Based on the empirical analysis of the effect of tax burden on enterprise behavior,the following conclusions are as follows: from the effect of enterprise tax burden on its financialization,the increase of enterprise tax burden has promoting effect on its financialization,while reducing tax burden has the opposite effect;viewed from enterprises of different ownership,compared with state-owned enterprises,the tax burden born by private enterprises has a significant impact on their financialization.In view of the results of enterprise tax burden on innovative R&D behavior,reducing enterprise tax burden has a significant incentive effect on its innovation R&D behavior;in terms of R&D processes,once enterprises make innovation decisions and enter the R&D procession,the quantity and quality of innovation brought by enterprise tax burden reduction will be improved more obviously;in terms of differentiating industries,compared with the primary industry,the reverse effect of tax burden on innovative R&D are more significant between the secondary industry and the tertiary industry.Corcerning environmental protection behavior,enterprise tax burden has a more significant inhibiting effects on its environmental protection behavior,in which the cash flow and earning performance play mediating roles between them.Specifically,non-polluting enterprises are more obviously affected by tax burden when practicing environmental protection than that of polluting enterprises;distinguished ownership,non-state-owned enterprises are more significantly affected by tax burden than state-owned enterprises.Accordingly,the following suggestions are put forward for reference: Reducing the tax burden of the real economy as a breakthrough to alleviate the enterprise financialization;focusing on preferential tax policy to enhance the "quantity" and "quality" of enterprise innovative R&D;taking the heterogeneity of enterprises into account to optimize enterprise environmental protection behavior according to circumstances;coordinating nominal tax rate with actual tax rate to optimize enterprise behavior.In addition,taking the implementation of CRS as an opportunity,so as to optimize the allocation of tax burden between enterprises and natural persons;improving the tax system for natural persons in order to stabilize the enterprises' s development expectation;strengthening the collection and management of tax and fee for natural persons,so as to reduce the tax pain of enterprises gradually.Moreover,optimize government behavior to reduce non-standard government expenditure and revenue;improve the collection and payment efficiency of social insurance as well as reduce the social security burden of enterprises;optimizing the cost burden between enterprises so as to help them transform and upgrade.In this study,it mainly includes normative analysis based on logical deduction and induction,comparative analysis,statistical and quantitative empirical analysis.In the aspect of normative analysis,using induction and logical deduction,this paper theoretically defines the types of micro-enterprise tax burden and enterprise behavior,abstracts the mechanism of enterprise tax burden affecting enterprise behavior,and puts forward more targeted countermeasures and suggestions for enterprise tax burden and enterprise behavior optimization.With regard to statistical analysis,this paper compares the tax burden and behavior of enterprises among different industries,regions and ownership by using quantile estimation,kernel density estimation and Taylor index,which excavates the distribution characteristics and laws of enterprises tax burden together with their behaviors,so as to objectively outline the "panorama" of enterprises tax burden and their choices.Concerning empirical analysis,it contains difference-in-difference,GMM and instrument variables estimation,focusing on exploring the direction and effect of tax burden exerting on enterprise behavior,so as to provide data support and empirical evidence for further clarifying the specific mechanism of enterprise tax burden and its behavior.