Study On The Tax Incentive Effect Of Smes Development

SMEs are major force for national economy and social development, but they are congenitally placed in the disadvantageous position, their development condition is still far from being satisfactory. The government adopts a series of economic and legal devices to mitigate the pressure of SMEs to enhance SMEs'motive power,and revenue is the one of means. Revenue is the important lever for the government to regulate economy, and revenue is the basic requirement and principal elements to promote SMEs. Tax incentives set accuracy is the major premise for the government's regulation on economy. In spite that our country has put forward a large number of tax preferential policy for SMEs, the SMEs still develop slowly. This text is aimed at analyzing the size and restraining factor of tax incentive policy.The purpose of this paper is to establish the appraisal system of tax incentive policy from public policy-tax policy angle through research on XingTai SMEs, to quantify the analysis on SMEs'tax incentive effect, to reveal the lack of tax policy, to put forward tax policy suggestion to promote SMEs'sustainable development.Firstly, the thesis analyses the current situation of XingTai SMEs'development and tax incentive. Secondly, it discusses discuss the tax incentive effect of different tax categories, individual analysis the effect of income tax and value-added tax on fixed investment respectively, contrasts the motive force of this two items of taxation. Thirdly, it analyses the tax incentive policy effect as a whole, basing on the current situation of tax preference and the gray forecast theory to discuss the development trend of SMEs, basing on system dynamics Vensim model to compare the effect of the current tax policy adjustment on SMEs. Finally, basing on the above empirical analysis, it founds out the shortages of current tax policy, and put forward reasonable policy suggestions.