Government Size,Government Intervention,and ETR

China's economy has shifted'from a high-speed growth stage to a high-quality development stage.With the continuous deepening of supply-side structural reforms,the issue of corporate tax burden has become a main theme of fiscal and taxation reforms in recent years.At the same time,the "Decision of the Central Committee of the CPC on Several Major Issues Concerning the Comprehensive Deepening of Reforms" pointed out in 2013 that further reform of the administrative decentralization and deepening the reform of the administrative examination and approval system include two important points:The first is to reduce government departments and streamline government scale;The second is to reduce some government-to-business approval processes and reduce government intervention in the economy and companies.This is a major policy-oriented change in the government's policy toward enterprises.In the post-market economy,government intervention has become more and more prosperous.So,is it possible to reduce the size of the government and reduce the level of government intervention in companies?Is it conducive to reducing companies' taxes and fees?This paper empirically studies the government's scale by establishing a mediator variable model,using the data of China's local government size and government intervention for three years of 2010,2012,and 2014,and the ETR on the listed companies of the Shanghai and Shenzhen stock markets.The way of government intervention and the actual tax burden of the company.At the same time,on the basis of summarizing predecessors' researches,these microscopic variables such as the scale of the company,the nature of the company's equity,and the specific industry the company belongs to are controlled,avoiding interference of these factors with the final result.At the same time,considering the connection between the government and the state-owned enterprises,this paper also classifies and returns the enterprises with different equity nature.The results of the study indicate that,as a whole,the expansion of the government scale will lead to increased government intervention in companies,which also leads to an increase in corporate tax burden.At the same time,the mediator variable model also shows that the impact of government size on corporate tax burden is fully reflected by government intervention.That is to say,government intervention is the complete intermediary variable of government scale affecting the actual tax burden of the enterprise.Further,after distinguishing the nature of the company's equity,the significance of this conclusion is even more pronounced for non-state-owned enterprises.For state-owned enterprises,the government-scale influence is less pronounced,and the level of government intervention is intermediate.The effect is only 45.41%.That is to say,for state-owned enterprises,the impact of changes in government size is not significant,and the reason for the change in tax burden is not just the strengthening of government intervention.Therefore,from this perspective,simplification of government size and reduction of government-to-business interventions will have a positive effect on reducing the actual tax burden for enterprises,and the higher the proportion of non-state-owned enterprises,the smaller the size of the government.The tax cuts are also stronger.From the perspective of the path of influence,the focus of these two policy objectives is not simply to reduce the size of the personnel of public utilities,but to gradually shift from a "big government" to a "small government" in the management model,and to reduce all aspects of the government to the enterprise.Intervention.Promote the healthy and sustainable development of non-state-owned economy.This paper identifies possible synergies among the three policies of streamlining government size,reducing government intervention,and corporate tax reduction and fee reduction,and enriches the research on the actual tax burden of enterprises.Great innovations have been made in the innovation of perspectives and the definition of variables.