A Study On Tax Incentive Policies To Accelerate The Development Of Producer Services

Producer Services, which supports and bridges the global industrial structure, is the key of modern services. The global services promote the developments of the producer services rapidly. Reorganization of the production chain and outsourcing cooperation become to be the new promotion of producer services. Since1950s, the global services developed quickly. Manydeveloped countries which had seen the social division and professionalism, led by the producer services, came to the era of services economy from industrial economy. These years the uprising and gathering trends of producer services show up clearly. And producer services became important component of national economy. But the development of producer services of our country is uneven and at a low level, which makes it less competitive comparing with that in developed countries.From the perspective of taxing, the tax for producer services is comparatively high. The tax burden and flexibility are higher than those of manufacturing industry. The tax base of value added taxes is narrow. The tax system of business tax is out. The discrimination and unclear instructions of corporate tax, and the personal income tax lacking the encouragement of labor investment are defects of tax system. Acting as an instrument for managing macro-economy and upgrading the industrial system, the tax system encourages the birth and growth of producer ervices. We worked out series of the tax policies to promote producer services. But the real effect is still unknown to all. How to make good use of these policies to develop producer services, to grow the economy and to upgrade the industry remains to be solved.In this context, we choose the factor of total factor productivity (TFP)as the measurement of the producer services to analyze the encouraging effects of tax policy to producer services. The definition of producer services is discussed in this paper. By summarizing the tax incentives, the encouraging effect is analyzed theoretically and empirically in order to come up with suggestions. Producer services outcome is taken as one variable, and the human capital and investment as two inputs variables. By analyzing the data from2001to2010in DEA method, a DEA almquist index is constructed to measure the effects. According to the results, tax and TFP go to the opposite trend. The tax incentives can promote producer services, though the effect is rather low. It needs adjustments of the tax incentives to promote producers services, such as the policy reform and transactions of tax incentives. According to quantitative and qualitative analysis, combining with the experiences of tax effect to producer services from US, Japan, UK, Korea and India, all these make it possible to come up with different tax policies to different industries, such as modern logistics, financial insurance, IT, service and tech research and so on. So we work out some suggestions to the tax incentives for our country, (?) tax,perfecting the personai tax system, improving the tax benefits of human capital.