"Tax And Fee Cuts" From The Perspective Of Supply-side Structural Reform:Theoretical Analysis And Effect Evaluation

In the past 40 years of reform and opening up,China's social and economic development has made great achievements,but at the same time of rapid economic development,there also risks.After the 2008 financial crisis,in order to reduce the negative impact of the crisis on the economy and iron out economic fluctuations,China has implemented a four trillion investment plan.After that,the macro economy showed a situation in which inflationary pressures and economic downside risks coexisted.The role of demand policies is greatly limited,neither comprehensive expansion nor full tightening.In order to solve this difficulty,it is necessary to proceed from the supply side and carry out structural adjustment,that is,supply-side structural reform.In the past 40 years of reform and opening up,China's fiscal and taxation system has been adjusted and improved many times,constantly adapting to the development of the socialist market economy with Chinese characteristics,and providing important institutional guarantees for long-term economic growth and social development.The tax reform in 1994 established a modern tax system framework and provided an important foundation for the rapid development of China's economy.At present,China has entered a new era,economic growth has slowed down,major social contradictions have changed,and new requirements have been put forward for the reform of the fiscal and taxation system.Internationally,since the global financial crisis in 2008,in order to cope with changes in the economic environment and boost economic growth,countries around the world have introduced tax reduction policies.At the same time,the flattening of the global economy has led to a trend of convergence of economic policies and taxation policies in various countries,which has led to more intense international tax competition.In recent years,the OECD countries have set off a wave of tax cuts,and China's tax reduction pressure has increased.In this context,the central government proposed an important work deployment of “tax reduction and fee reduction”.On the one hand,it is adapted to the needs of domestic economic development and effectively stimulates supply;on the other hand,it is also the inevitable way to establish and improve the modern fiscal and taxation system,and is an inevitable requirement for improving the state's governance capacity and optimizing the taxation structure.At the same time,"tax reduction and fee reduction" conforms to the current international tax reduction wave and is of great significance to improving China's economic competitiveness.Then,is “tax reduction and fee reduction” merely a specific measure to reduce economic costs in the “destruction”,“establishment” and “down” of supply-side structural reforms? Is there a connection between "breaking" and "standing" ? What kind of connection exists? How to understand "tax reduction and fee reduction" from the perspective of supply-side structural reform and from the height of national strategy? Studying these issues has important theoretical and practical significance for enriching the supply-side structural reform theory and practice and guiding the next step of “tax reduction and fee reduction”.This paper is divided into six chapters.The first chapter introduces the research background and significance,raises questions and conducts literature review of research questions.The second chapter first defines the concept of “tax reduction and fee reduction” from the perspective of tax rate(rate)and tax amount,and discriminates the difference between different understanding angles of “tax reduction and fee reduction”.Then it introduces the theoretical basis of “tax reduction and fee reduction” and the related theories of supply-side structural reform in China from the aspects of supply school,optimal tax system theory and endogenous growth theory.The third chapter combines the theory of economics to analyze the relationship between "tax reduction and fee reduction" and supply-side structural reform from the perspective of "breaking","standing" and "falling".On the basis of combing the limitation of “tax reduction and fee reduction” in China,the fourth chapter also based on the three perspectives of “breaking”,“standing” and “lowering”,and empirically evaluating the supply-side structural reform effect of “tax reduction and fee reduction”..The fifth chapter examines the tax reduction trend of OECD countries and summarizes its tax reduction characteristics,and explores its reference significance for China's "tax reduction and fee reduction".On the basis of theoretical and empirical analysis,as well as international reference,the sixth chapter analyzes the feasibility and sustainability of further “tax reduction and fee reduction” in China,and proposes further “tax reduction and fee reduction”.Specific policy measures.The conclusion of this paper is that the "tax reduction and fee reduction" not only directly reflects the "down" of the supply-side structural reform,but also the "destruction" of the supply-side structural reform with the current fiscal decentralization of China.Breaking the ineffective supply,resolving the excess capacity has an important impact,and from the perspective of enhancing economic incentives,it is the "establishment" in the reform under the supply-side structure,that is,the important measures to encourage innovation,promote technological progress,and promote industrial structure upgrading.Regardless of the reality or the practice of OECD countries,“tax reduction and fee reduction” also needs to consider fiscal pressure.Recently,China has increased the fiscal deficit space.However,in the long run,while reducing taxes and reducing fees,it is necessary to expand the tax base to ease fiscal pressure.According to the theoretical and empirical analysis,referring to the tax reduction measures of OECD countries,this paper believes that the next step of “tax reduction and fee reduction” should be: continue to reduce the VAT rate,promote the completion of the third and second-class work;continue to reduce corporate income tax,the focus is on stimulating Enterprises to improve innovation capacity and human capital accumulation;reduce social security contributions,while expanding social insurance payment coverage;deepen personal income tax reform,further promote the collection of comprehensive income and household collection;increase the size of micro-enterprises tax reduction efforts,establish a tax incentive system for start-up enterprises.