Research On The Impact Of Tax Burden On Entrepreneurship

Since the development of China's economic entered a new era,economic growth has gradually been driven by investment,exports,and demand instead of supply-side reforms.Among them,"double innovation" and "double reduction" are the key to deepening the supply-side reform in China,and the two are complementary and indispensable.Stimulating the spirit of entrepreneurship for all and encouraging and protecting a new generation of entrepreneurs is the only way for China to move from an economic powerhouse to an economic powerhouse.At the same time,the state uses a tax-and tax-reduction fiscal and taxation policy to reduce the tax burden for enterprises,thereby achieving "Double innovation" provides institutional guarantee.Based on the current background of encouraging entrepreneurial development in China,this paper studies whether the tax reduction policy has achieved the effect of stimulating entrepreneurial development from the perspective of tax burden.The theoretical part divides the tax burden into macro tax burden and micro tax burden;the empirical part builds an empirical model from the perspective of collating impacts and regional impacts.Studying the overall impact,the tax burden is decomposed into macro and tax burdens structure.The article structure is as follows: First,explain the basic theory of entrepreneurship and tax burden.When explaining the basic theory of entrepreneurship,on the one hand,it defines the definition of the research subject's entrepreneurship;on the other hand,it proposes that the key factors affecting entrepreneurship development are the entrepreneur,the entrepreneurial motivation or willingness,opportunities,resources,and the entrepreneurial environment.Five key factors analyze how the tax burden affects entrepreneurial development.Then,based on the basic theory,combined with the current status of tax burden,we deeply study the current tax burden problems in China.There are mainly imbalances in the tax burden structure.The proportion of tax revenue used for livelihood expenditure is too low and the micro tax burden is too heavy.Problems will have an impact on the environment and willingness to start a business,thereby affecting business startups.Then,this paper uses the software Stata15.1 to select a fixed-effect model,select provincial panel data from 2001 to 2015,and empirically study the impact of tax burden on regional entrepreneurial activity from two perspectives of different taxes and different regions.In the process of empirical analysis,this article will study the overall impact of tax burden on entrepreneurship from two aspects,the macro tax burden level and the tax burden structure.In order to further analyze the regional impact of tax burden on entrepreneurship,this article divides the sample data into three categories: east,middle,and west,and empirically studies the heterogeneity of the impact of tax burden on entrepreneurship between different regions,so as to formulate targeted taxation.Preferential policies provide theoretical basis for promoting entrepreneurial development.The empirical results show that in terms of macro tax burden,excessive tax burden has a significant inhibitory effect on the development of entrepreneurship;in terms of tax burden structure,the corporate income tax tax-burden also has a significant inhibitory effect on entrepreneurship.The inhibitory effect of turnover tax on entrepreneurship is not significant.At the same time,the results of heterogeneity analysis show that the impact of tax burden on entrepreneurship in the central and western regions is applicable to the above conclusions,but there is no evidence that a significant negative effect exists between the tax burden of the eastern region and the activity of entrepreneurship.Finally,based on a comprehensive analysis of the current tax burden and conclusions from empirical research,the author proposes tax policy recommendations to promote entrepreneurship.The first is to continue to vigorously promote tax reduction policies,and tax preferences should be appropriately tilted to direct taxes such as corporate income tax.Second,while reducing taxes,improve urban infrastructure construction and improve the level of government public functions and services,provide a better social environment for entrepreneurship,play a synergistic role with tax reduction policies,and jointly promote the early realization of mass entrepreneurship.Third,when formulating tax reduction policies,pay attention to local conditions and minimize "one size fits all" policy measures.