An Empirical Research On Influence Brought To The Burden On Domestic Enterprises When Tax Exceeds The Growth Of Economy

Macro Tax of China has been a controversial subject for quite a few years. A situation that both government and academia started to pay heavy attention to is China’s tax has been over the income for almost a decade. Under our current tax system, enterprise is the majority of our tax payer. Burden on enterprises and macro tax burden reflects the position occupied by the micro-economic and macroeconomic level of our country. It is not comprehensive to simply decide whether or not China is collecting excessive tax by just analyzing the relationship between tax and economy on a macro-economy level. Such simple analysis is not enough. We have to observe this matter from different dimensions, such as. by different kinds of tax. in different industries, of different kinds of ownership, and so on. In addition, a sophisticated method named Micro Tax Burden Calculation is required to get a more accurate and reliable outcome for this practical research.First, by combining the theory and Econometric Analysis, we can make use of the Linear Programming model created by Branson and Lovell (2001) to quantify the influence over the economy caused by environment. Second, we will use Normative Analysis and Practical Analysis simultaneously on different samples to get the data we need, and compare them in different settings such as in different industries and of different ownerships. The result shows that, in terms of flow tax, these nationalized enterprises all have negative big numbers. Not only are their numbers higher than normal, but also have a tendency to keep increasing within the next two years. Enterprises of the rest ownership type have been stable on their flow tax numbers, and there are signs that indicate their negative flow tax numbers are likely to drop within the next two years. In terms of different industries, the flow tax of2010compared to that of1998,85%industries of the whole have been able to reduce their negative flow tax, only a few industries such as Coal, non-ferrous metal mining, and so on increased their negative flow tax. On corporate income tax, after we apply the sample data of2009and2010to Pearson’s correlation analysis, we are able to tell that corporate income tax has a negative impact on the enterprises, and we are also able to quantify the negative impact to enterprises of specific industries that are caused by income tax under the current tax system. In conclusion, from the previous calculation and comparisons, we are able to tell that, in2010. China’s public companies have an obvious increase on the rate of return on average compared to the previous year, and the increase on income tax burden is not as obvious. The income tax burden appears to be high only in monopoly industries. In the rest industries, income tax is averagely lower than nominal rate.