Analysis On The Impact Of Tax Burden On The Development Of Core Industries Of Digital Economy

Digital economy is the current background and trend of development of the world.In the14 th Five-Year Plan,China clearly put forward the work focus of "forging new advantages of digital economy,accelerating the pace of digital society construction,improving the level of digital government construction,and building a good digital ecology".Among them,core industries of the digital economy are basic parts of the digital economy.Only with the vigorous development of digital industrialization,can these industries digitization ride the trend and give full play to the radiating and driving role of the digital economy to all fields and industries.As an important means for the government to regulate macro-economy,tax policies can provide policy support for the development of core industries of digital economy by reducing the tax burden of enterprises,guiding the factor input of market subjects and so on.Therefore,it is of great significance to study the impact of the tax policy on core industries of digital economy in order to stimulate the development potential of digital economy and enhance national digital competitiveness.The thesis analyzes the impact of taxation on the core industry of the digital economy through the panel data of China’s provincial level from 2013 to 2020.In theoretical analysis,it explores the effect of tax policies by carding research results of scholars at home and abroad in the digital core economic industry specific industries.Then combining with the characteristics of the digital core industries,Market Failure theory and other related theories,it summarizes that tax policies can promote the development of digital economy core industries by reducing tax burden of enterprises,guiding elements flow,and providing the system guarantee.At the level of empirical research,from three aspects of innovation driving,scale development and economic benefits,the evaluation system of the digital economy core industries is constructed to measure the development level of digital core industries in 27 provinces,cities and autonomous regions of China(excluding Hong Kong,Macao and Taiwan,Tibet,Qinghai,Xinjiang and Ningxia).On this basis,taking the development level of digital economy core industries in each region as the explained variable,and selecting regional industry tax burden and tax structure as explanatory variables,it analyzes the impact mode of tax on digital core industries.In addition,considering the regional differences in the eastern,central and western regions,the different utility of tax in the development of digital core industries in different regions is discussed to elaborate the impact effect of tax further.Through theoretical analysis and empirical research,we can draw the following conclusions: In terms of industrial tax burden,the development level of core industries of the digital economy has an "inverted U-shaped" relationship with the industry tax burden at the full sample level,which is also reflected in central and western regions.What`s more,the optimal tax burden in the western region is higher than that in the central region.However,in the eastern region,the tax burden is negatively correlated with the development of digital core industries.In terms of tax structure,at the full sample level,the proportion of corporate income tax of core industries has a promoting effect on the development of digital industries,while it does not show a significant relationship in the sub-regional discussion except the positive effect between value-added tax ratio and digital industry development in the western region.Otherwise,regional support is also conducive to the development of core industries of digital economy.As a result,suggestions are as follows: First,taxation on the core industries of the digital economy should be optimized further.We should pay more attention to the digital enterprises in initial stage by designing beneficial policies for the sake of strengthening the tax support on the digital core industry.In the meanwhile,the design of tax policy should be more focused on regional flexibility,scientificity and rationality.For example,in the eastern region,to stimulate the market competitiveness and to maintain the stable market fair trading environment are given priority.However,in the central and western regions,we should focus on improving the digital infrastructure and related development environment,encourage the inflow of capital and talent and innovative output to stimulate the development potential of enterprises.In addition,we should make some targeted tax policies,like cost deduction standards and so on to expand the scope of policy preferences for the core industries of the digital economy under the consideration of characteristics of the Internet and related services industries and the systematic integrity of tax policies.Besides,we shall improve the modern tax governance level of digital tax management and digital services when complete the taxation system and relevant laws with The Times.