A Study On Structural Tax Reduction And The Development Of Equipment Manufacturing

In2008, the global financial crisis broke out. In response to the economic crisis impacton Chinese economy, the concept of “structural tax reduction” was put forward at the2008central economic conference for the first time. It is a kind of tax reduction which containsincreases and decreases, structural adjustment. The purpose of the structural tax reduction isto reduce the tax burden on taxpayers, enhance the investment and consumption, acceleratethe transformation of economic growth mode and the adjustment of economic structure.Equipment manufacturing is an important foundation for the development of the nationaleconomy. The structural tax reduction policy has played a positive role in promoting theequipment manufacturing. Liaoning province is an important support of the northeast oldindustrial base. Its equipment manufacturing is in the front position in the country. Besides, itis one of the earliest pilot value-added tax reform. So this paper selects Liaoning Province asthe object of empirical analysis. On the basis of the analysis, this paper puts forward policysuggestions to further improve the structural transformation, in order to better promote thedevelopment of equipment manufacturing.This paper is divided into six parts and the analysis proceed as follows. The first partintroduces the research background and significance, the research status at home and abroad,research ideas and methods, innovations and deficiencies. The second part introduces theconcepts related to structural tax reduction, modern tax principles and theory of optimaltaxation, and they provide a theoretical support for our country’s structural tax reductionpolicy, then it introduces the policy adjustment on the structural tax reduction. The third partintroduces the basic situation and tax burden of equipment manufacturing in China, then itanalyzes the effect of the structural tax reduction policy from the perspective of the equipmentmanufacturing. The fifth part is the empirical analysis which is based on the example ofLiaoning Province. It analyzes the competitiveness of the equipment manufacturing inLiaoning Province at first. Then we establish the auto-regressive lag model analysis and pathanalysis based on the industrial output and tax revenues. The fifth part is the internationalreference about the structural tax reduction policy supporting the development of equipmentmanufacturing. The sixth part puts forward some suggestions to improve the structural taxreduction policy and promote the transformation and development of the equipmentmanufacturing.