Nominal Tax Rate Adjustment,Actual Tax Burden And Enterprise Development

In recent years,many countries have introduced tax cuts in order to promote the development of domestic enterprises and boost their economies.In recent years,China has also carried out large-scale tax cuts,but some experts and the media have found through investigation that some enterprises may have "tax cuts without reducing burdens".But in fact,what is the effect of tax cuts on the actual tax burden of enterprises?What factors affect the implementation effect of tax reduction policies?Whether tax cuts can promote the development of enterprises.Above are the main issue of this paper.This paper takes the tax policy of the western development as the research background,and uses the industrial database data of 1998-2007.The object of the study is the sample of enterprises established before 2001,that is,the enterprises established before the implementation of the tax policy for the development of the western regions.The main research methods are empirical analysis of the impact of nominal tax adjustment on the actual tax burden and the development of enterprises.It is found that the reduction of nominal tax rate will reduce the average actual tax burden of enterprises,but the decrease is less than the nominal tax rate.The characteristics of the enterprise and the different circumstances of the local government will affect the magnitude of the actual tax burden.The decrease of the actual tax burden of the enterprise will promote the level of profitability and reinvestment,but there is no significant impact on the financial management of the enterprise.According to the conclusion,this paper has the following suggestions:(1)Comprehensive use of tax cuts,increase preferential policies on enterprise income tax in addition to the adjustment of tax rates,and improve the income tax in the central and local proportion.(2)According to the nature of different enterprises and industries,introduce relevant policies.(3)For the implementation of tax reduction policy,reduce government intervention and adhere to statutory taxation.This article provides some reference for tax policy adjustment using nominal tax rate adjustment.