A Research On The Impact Of Tax And Fee Reduction Policies On Enterprises Total Factor Productivity

In the new stage of economic development,China takes the path of high-quality economic development,then it must adhere to quality change,efficiency change,power change.The report to the 20 th National Congress of the Communist Party of China pointed out that "Striving to raise total factor productivity and promoting the effective improvement of quality and reasonable growth of quantity of the economy".The improvement of total factor productivity has become the source of achieving high-quality economic development,and also the driving force to transform the development mode,optimize the economic structure and further promote the supply-side structural reform.Enterprises are the cells of the national economy,which determine the vitality and dynamism of our socio-economic activities.Their improvement of total factor productivity improvement is the source of macro total factor productivity growth.Faced with the multiple impacts of downward economic pressure,uncertain international trade situation and COVID-19,how to stimulate the vitality of market entities,expand enterprises development space,and improve enterprises total factor productivity is the base point of all policies.As an important focus of the active fiscal policy in recent years,the implementation of the tax and fee reduction policy has also played an important positive role in deepening the supply-side structural reform,and has become one of the key reform measures to promote China’s economy to the road of high-quality development on the basis of fully stimulating the vitality of various market entities.Therefore,it is of great theoretical and practical significance to systematically evaluate the impact of tax and fee reduction policies on the enterprise total factor productivity and reveal the mechanism of the impact of tax and fee reduction policies on the enterprises total factor productivity,which is in line with the practical needs of China’s current economic development.In this context,this paper closely follows the research theme of tax and fee reduction and enterprise total factor productivity,and on the basis of reviewing the policy background and domestic and foreign literature,studies its impact on enterprise total factor productivity from the multi-dimensional perspective of China’s tax and fee reduction policy.First of all,according to the evolution and content of tax reduction and fee reduction policy,this paper analyzes the tax reduction and fee reduction policy at the theoretical level.This paper argues that the tax and fee reduction policy aiming at high-quality economic development has an impact on the economy in the final analysis through the allocation of the three economic factors of capital,labor and technology.Based on this,we will comprehensively sort out and reveal the theoretical basis of tax reduction and fee reduction affecting enterprises’ total factor productivity from the three dimensions of labor factor,capital factor and technology factor,taking into account the two levels of "tax reduction" and "fee reduction".Secondly,based on the capital factor dimension,the accelerated depreciation of fixed assets is taken as a typical policy sample to empirically analyzes the impact of tax and fee reduction policies on enterprise total factor productivity.This part takes the accelerated depreciation policy of fixed assets introduced in 2014 and 2015 as the standard natural experiment,and constructs a generalized difference in difference model to evaluate its impact on enterprise total factor productivity.The results show that the policy of accelerated depreciation of fixed assets significantly improves the total factor productivity of pilot enterprises,and has good sustainability.This policy mainly promotes productivity improvement by increasing corporate fixed asset investment,stimulating corporate R&D investment,and easing corporate internal financing constraints.Further research shows that the productivity promotion effect of the policy is more prominent in non-state-owned,labor-intensive or growth-stage enterprises.Furthermore,based on the labor factor dimension,pension insurance contribution reduction is taken as a typical policy sample to empirically analyze the impact of tax and fee reduction policies on enterprises total factor productivity.In this part,three reductions in the contribution ratio of enterprise pension insurance are taken as a quasi-natural experiment,and the intensity difference in difference model is built to empirically test the effect and mechanism of the policy on enterprise total factor productivity.The findings are as follows: first,the pension insurance fee reduction policy has a significant promoting effect on the total factor productivity of Chinese enterprises.This conclusion has been verified after a series of identification strategies;Second,the pension insurance fee reduction policy can promote the total factor productivity of enterprises mainly by stimulating enterprises to increase the employment of highly skilled labor,increasing the wages of ordinary employees and improving the investment efficiency of enterprises.Thirdly,heterogeneity analysis shows that the promotion effect of social security fee reduction policy is more prominent in non-state-owned,small and medium-sized or labor-intensive enterprises.Then,based on the dimension of technology factors,taking the additional deduction of R&D expenses as typical policy samples,the impact of tax and fee reduction policies on enterprises total factor productivity is empirically analyzed.In this part,the R&D expense deduction policy introduced in 2013 is regarded as a natural experiment,and the difference in difference model is built to empirically test the effect of the policy on enterprise total factor productivity.The results show that:firstly,the policy of additional deduction of R&D expenses has a significant promoting effect on total factor productivity of enterprises.Secondly,the influence of R&D expense deduction policy on enterprises total factor productivity is mainly realized through encouraging enterprises to increase R&D input and improving high-quality innovation output.Finally,the above effect is more obvious in non-state-owned,higher marketization and small-scale enterprises.Finally,based on the above theoretical analysis and empirical test,this paper puts forward policy suggestions on the optimization and improvement of tax and fee reduction policies.