The Study Of The Impact On Enterprise Tax Burden By The Government-enterprise Relationship In China

Corporate tax burden has always been a major concern of the national economic strategy.In recent years,with the rapid progress of tax reform,the issue of corporate tax burden has attracted more attention from academia.The present research is mainly focused on the influence of factors,such as calculation,industry,region,enterprise characteristics,institutional environment,etc.on the level of tax burden among Chinese enterprises than the relationship between government and enterprises.The relationship between government and enterprises is widespread in China during the transition period.As an informal alternative mechanism of market and law,it plays a role in the development of macro economy and micro enterprises.Research shows that there is a certain correlation between the government-enterprise relationship and the corporate tax burden,which mainly reflects in two aspects: the property rights and the political connection of enterprises.However,most research only focuses on the impact on the income tax burden,ignoring the turnover tax burden and comprehensive enterprise tax burden.Therefore,this paper will use property rights and political connection as indexes to reflect the relationship between government and enterprises in order to compare and analyse the impact of this relationship on enterprises income tax burden,turnover tax burden and comprehensive enterprise tax burden.Firstly,this paper makes a thorough review on the relevant literature,theoretically analysing the effect mechanism of the relationship between the government and the enterprise and making the hypothesis.Then,this paper takes all the listed companies in Chinese A stock market from 2008 to 2015 as samples of empirical analysis.The independent variables are property rights and political connections,and the dependent variables are the actual income tax bearing rate,turnover tax bearing rate and the comprehensive enterprise tax bearing rate.Establishing there models according to three dependent variables and making regression.The result shows that state-owned enterprises bear heavier income tax burden but lighter turnover tax burden and comprehensive enterprise tax burden compared with non state-owned enterprises.Besides,companies with political connections bear lighter income tax burden and turnover tax burden,but there shows no significant difference for the comprehensive enterprise tax burden.Finally,this paper explains the reasons of this phenomenon according to the relevant theory and tax policy,and gives some suggestions.Government should reduce government intervention,build a market environment of fair competition and establish a standard tax system,and companies should improve enterprise management level.