The Research Of Fiscal Policy For The Promotion Of Strategic Emerging Industry

When financial crisis occurred in Wall Street in 2008 spread through the vein of economic integration, the economy of the whole word was in depression, china included. In a short time, many foreign trade enterprises collapsed, the development of China's economy was affected obviously. When we recall the past, we start to think the disadvantages of traditional development model. On one side, the false belief that GDP is the most important bring about a lot of high-energy consuming and heavy-polluting enterprises, The practice of the past decades years shows that traditional development mode is similar to drink poison to quench thirst. On the other side, though the low level manufacturing industries which is based on demographic dividend brings about many jobs, it lacks competitive strength and stability. However, times of crisis are also times of opportunity. China takes this opportunity to put a lot of effort into developing strategic emerging industry and change development model. Strategic emerging industry is to be the most important part of economic development in a long time to come. In this critical moment, we should adjust macro-policies to help develop strategic emerging industry positively. We will talk about fiscal policies in this paper.The second chapter shows theory of the paper. First of all, we analyze market function in the framework of Pareto general—equilibrium analysis, then we analyze what function government should have. Next, we introduce government's basic macro -control measures:economic measures, legal measures and administrative measures. After understanding the three measures, we can find out the priority of fiscal measures. The third chapter shows the range, current situation and major problem of China's strategic emerging industry. The major problem is our research capability is not strong enough and development is far behind developed countries. In the fourth chapter, we introduce the successful experiences of America, Japan, South Korea and England. Due to the different conditions, foreign country's successful experiences is not necessarily suitable to China, we should seek truth and absorb the useful experience. The fifth chapter is the part of suggestion, after understanding the current condition of strategic emerging industry and foreign country's successful experiences, I raise specific fiscal suggestion which consist of three parts—human capital and research, manufacture, consumption. The first part proposes human capital and research suggestion, which contains tax reduction and finance support. The second part proposes a series of tax reduction consist of added-value tax, business tax and corporate income tax in order to encourage product and lead a flow of resources. The third part proposes that government use government procurement and consumer subsidy to promote the market of strategic emerging industry. Infrastructure and services are also important supplement.