The Research On The Equity Effect Of The Tax And Fee Reduction Policies Based On CGE

From April 1,2019,the state has issued a series of large-scale tax and fee reduction policies,aming to reduce the tax burden of enterprises and residents as well as stimulating the economic development.However,in the meanwhile,the fair distribution problem in China is becoming increasingly serious,which has become another important factor affecting domestic industrial development and social progress.This paper studies 2019’s new tax and fee reduction policy’s effect,which will conducive to the implementation of tax and fee reduction measures and has important theoretical and practical significance for the healthy and rapid development of China’s economy.This paper compiles the national and provincial-level social accounting matrix(SAM)based on the national as well as 31 provinces’(cities’)input-output table of 2017.Using the national and reginal CGE model,this paper is goner to study.the equity effect of the tax and fee reduction policies in 2019 from three dimensions:urban and rural residents’ income equity,regional equity and industrial equity.On this basis,it further divides policy into three parts-deepening the value-added tax reform policy,the social security policy and the accelerating depreciation policy,in order to analyze the contribution of specific policies to social equity and whether there is synergy between the policies.This paper finds that:(1)the tax and fee reduction in 2019 not only reduces the burden,but also plays a certain role in social equity.The policies narrow the economic gap among regions,es pecially between the eastern and western regions;the policy results are also conducive to the equalization of public services;the policy still balances the capacity gap among various industries by stimulating the development of industries with original low capacity.However,at the same time,the gap of value-added tax burden among industries as well as the gap of urban-rural residents’income have expanded after the policy,resulting in a certain loss of efficiency;(2)The income inequality of urban and rural residents is aggravated by individual policies.In terms of regional economic equity,there are offsetting effects between individual policies,which mainly performed as the equality effect of tax rate adjustment is greater than the widening effect of adding deduction and real estate one-time deduction policies on regional economic gap.After the two-phase offset,the deepening reform of value-added tax is ultimately conducive to regional economic equity.In terms of the fairness of industrial tax burden,there are also mutual offsetting effects among policies,which are mainly reflected as the equality effect of tax rate adjustment is far weaker than the widening effect of additional deduction on industrial tax burden gap.With regard to the faireness of industrial production capacity,the deepening reform of value-added tax have synergistic effects in narrowing the gap of industrial production capacity.