Research On The Tax System To Promote The Optimization And Upgrading Of China’s Industrial Structure

At present and for some time to come,China is still in an important period of strategic opportunities for development,but there are new developments and changes in both opportunities and challenges.The international environment is becoming increasingly complex,with increasing instability and uncertainty.The COVID-19 epidemic has had a far-reaching impact,the world economy is in a downturn,economic globalization is facing headwinds,the global energy supply and demand landscape is undergoing profound changes,and the international economic and political landscape is complex and volatile.To promote high-quality development during the 14 th Five-Year Plan period,we must base ourselves on the new stage of development,implement the new development philosophy and establish a new pattern of development,deepen supply-side structural reform,guide and create new demand with innovation-driven and high-quality supply,and enhance the resilience of the supply system and its adaptability to domestic demand.As an important part of economic structure,industrial structure is the focal point of the phased supply-side structural reform,and the realization of industrial structure optimization and upgrading is the foothold of promoting supply-side structural reform.Promote structural reform,the supply side to put economic development focus on the real economy,quickening construction of manufacturing power,power quality,promote advanced manufacturing and modern service industry depth fusion,modernization of high-level industrial base and the industrial chain,strengthen the infrastructure to support the leading role,to build the real economy,science and technology innovation,modern finance,human resources,coordinated development of the modern industry system.At present,China’s development is still unbalanced and inadequate.Reform in key areas and key links remains a daunting task.Low-end industrial chains are still being blocked,and the country’s innovation capacity does not meet the requirements for high-quality development.Tax revenue as national macroeconomic regulation and control important means,itself belongs to the category of political economics,is often as effective industrial policy,most countries on the supply side,under the background of structural reform,tax is not only the system of public products offered by the government on the supply side,and is also an effective tool for industrial policy,is an important policy of supply side structural reforms.During the 13 th Five-Year Plan period,tax revenue played an important role in the reform process of "three deletions,one reduction,and one subsidy".With the deepening of reform of major tax systems such as value-added tax and individual income tax,and the coordinated reform of tax organizations through the merger of state and local tax agencies,the total tax burden and the cost of tax compliance have both been reduced,and the fundamental,pillar and guarantee role of tax in national governance has become increasingly prominent.Practice has proved that the tax system plays an important role in the optimization and upgrading of industrial structure.According to the needs of national industrial policies,it is an inevitable choice for China’s high-quality economic development to make full use of the optimization of tax system to facilitate the supply-side reform and promote the optimization and upgrading of industrial structure.This paper uses the innovative theory of socialist political economy with Chinese characteristics to analyze the influence of tax system on industrial structure,which has important theoretical value and practical significance.In particular,using the supply-side structural reform theory,the tax system is brought into the perspective of the government’s supply of public goods or public economic policy structural reform,and the mechanism of action between tax reform and industrial structure optimization and upgrading is analyzed.The panel fixed effect model was used to test the influence of tax system on the optimization and upgrading of industrial structure.Based on the perspectives of total index,structure index and regional tax competition,the empirical test was conducted to analyze the policy effect of tax system design on the optimization and upgrading of industrial structure in multiple dimensions.The theoretical analysis and empirical results show that the total burden of tax,the burden of different industries,the burden of labor and capital factors;The tax structure ratio of consumption and investment,the tax structure ratio of income tax and commodity tax;The degree of local tax competition has a significant inhibiting or promoting effect on the industrial structure.In the future and for a long time to come,under the impact of COVID-19 and in the face of complex domestic and international environments,structural tax cuts will remain an inevitable requirement for optimizing and upgrading the industrial structure and ensuring high-quality economic development.It is suggested that in the process of optimizing the tax system in the future,"tax reduction and fee reduction" should continue to be an important part of the proactive fiscal policy and the "cost reduction" policy of supply-side structural reform.We will gradually increase the proportion of direct taxes,reduce the proportion of taxes on goods and services,constantly optimize the structure of the tax system and improve the modern tax system.Improve the local tax system,give local governments independent tax legislative power and financial management authority within a certain scope,encourage local tax competition and guide industrial structure adjustment on the premise of ensuring local fiscal expenditure;Give full play to the role of tax industrial policy,according to the national industrial policy guidance,for individual industries,industries,and even enterprise groups to develop encouraging or restrictive tax policies,to achieve the purpose and effect of adjusting the industrial structure.