Comparison Between Tax Burden Of Direct Tax And Indirect Tax And Study On Structure Optimization

The tax reform in 1994 established the dominant position of indirect tax in China's tax system.After more than 20 years of reform and adjustment,the proportion of indirect tax is still relatively high.In recent years,China's economy has entered a new stage,the economic growth is weak and many enterprises stressed that the tax burden is too heavy to bear.Under such a realistic background,the reduction of enterprise tax burden has become a hot topic in society,as well as the key of government and market relations.The paper argues that the tax structure with the high proportion of indirect taxation in our country is contradictory to the selfstabilization mechanism of taxation.When the profitability of the enterprise is weak,the tax system with high proportion indirect tax is not conducive to the healthy development of the enterprise,it's also the reason for the high corporate tax burden.Based on this,this paper analyzes the tax burden of direct tax and indirect tax from the perspective of enterprise,aim at providing new ideas for optimizing tax structure.Firstly,the paper studies the theory of optimal tax system and analyzes the characteristics of direct tax and indirect tax from the perspective of qualitative analysis,and explains the advantages and disadvantages of direct tax and indirect tax from three aspects: income effect,substitution effect and structure effect.Then,the paper analyzes the tax burden of enterprises under different supply and demand price elasticity,and further analyzes the tax burden of enterprises under different direct tax and indirect tax structure.Finally,the paper summarizes the following four conclusions: 1.Indirect tax can be a tax burden of the enterprise;2.In different economic cycles,direct tax and indirect tax burden are different;3.The indirect tax and direct tax on an enterprise is not static,when the profit is below a certain level,the indirect tax burden is heavier,on the contrary,the direct tax burden is heavier;4.Indirect taxes cannot perform automatic stabilizer functions in terms of income distribution and enterprise development.In order to analyze the actual tax burden of Chinese enterprises,this paper makes a simulation analysis of the equilibrium value of direct and indirect taxes under different transfer levels for the current tax level of direct tax and indirect tax,and finds out at the current profit level of industrial enterprises in China,the indirect tax levied on the enterprise is lower than direct tax when the tax burden to pass is more than 50%.This paper also deduces the relationship between the tax shifting and the supply and demand price elasticity,and makes a preliminary estimate of the demand and supply level of different industries,and obtains the corresponding tax shifting level,so as to further measure the actual tax of enterprises in different industries.Then,this paper summarizes the historical experience of the structural changes of the two developed countries and the BRIC countries,and points out that the direct tax and indirect tax structure of a country are mainly affected by four factors: economic development level,industrialization process,government policy orientation and tax collection and management.And speculates that the future of our country's tax structure will show a "relatively high proportion of direct tax vs dual-subject model".In the end,this paper puts forward four suggestions for improving the direct tax and indirect tax structure of our country: 1.increase the proportion of direct tax,and pay attention to fairness in the initial distribution and redistribution;2.optimize the design of indirect tax,and reduce the tax burden of the enterprise;3.coordinate direct tax and indirect tax;4.strengthen the relevant supporting system reform.