Tax Burden And Development Of Small And Medium-sized Enterprises

Small and medium-sized enterprises(SMEs)is the basis of "mass entrepreneurship and innovation",it plays an irreplaceable role in increasing employment,promoting economic growth,science and technology innovation and social stability.It is the foundation of our country's economy,the source of development.It has important strategic significance for national economy and social development.Literature review shows that tax burden is an important indicator to measure the growth environment of enterprises,and it will affect the development of SMEs.Then,current situation of the development of SMEs found that the development of China's SMEs is in a neck and facing great pressure;In addition,after adopting the policy of cut taxes and administrative fees,the macro tax burden rate of China's SMEs still maintains higher level among the world.So,this paper empirically studies the impact of tax burden on the development of SMEs by using the data of provincial panel from 2001 to 2016.The study found that the tax burden significantly inhibited the development of SMEs.On average,if tax burden increase 1%,the sales scale of SMEs will decrease 2.119%,the entrepreneurial activity of SMEs will decrease 2.639%,the employment scale of SMEs will decrease 2.147%.Further analysis found that,turnover tax burden has no significant impact on the development of SMEs,while the tax burden of income tax has a significant impact on the development of SMEs.What's more,tax burden has different effects on enterprises with scale heterogeneity.In general,the tax burden significantly inhibits the development of small enterprises.But it did not significantly inhibit the development of mediumsized enterprises.On the basis of empirical research,combined with China's reality,this paper puts forward specific suggestions for improving the development of SMEs:(1)improve relevant policies and regulations;(2)effectively promote the "tax reduction and fee reduction" measures,focusing on corporate income tax and small enterprises;(3)improve the financing environment for SMEs;(4)promote the transformation of SMEs;(5)improve the public service system.