Research On The Mechanism And Effect Of Tax And Fee Reduction Policies Affecting The Viability Of Small And Micro Enterprises

In recent years,the deep-rooted structural contradictions between supply and demand in China’s economic development have caused increased downward pressure on the economy,and uncertainty and other issues have inhibited the vitality of micro-entities and constrained the high-quality development of China’s economy.Tax reduction and fee reduction policies can not only achieve short-term economic goals from the perspective of macroeconomic policies,but also stimulate microeconomic vitality,while combining with the optimization of China’s tax system to form a long-term effect mechanism.Based on the importance of tax reduction and fee reduction policies,in order to test the effect of tax reduction and fee reduction policies,put forward policy suggestions for the optimization of the relevant tax system,and enhance the survival and development of small and micro enterprises,the article focuses on large-scale tax reduction in 2019 The article evaluates the effect of tax reduction and fee reduction policy by using the double difference method to empirically test the effect of tax reduction and fee reduction policy,taking the policy impact time point and small and micro enterprises in Hubei Province as the research object.The large number of micro and small enterprises is not only an important source of national revenue,but also plays a key role in absorbing employment.Based on relevant literature,this paper analyzes the impact of tax and fee reduction policies on the viability of micro and small enterprises in Hubei Province.Based on the research results related to the viability of MSMEs,the survival rate of MSMEs is used as an indicator of their viability.In view of the small amount of research data on micro and small enterprises,we adopt the Python method to obtain data on micro and small enterprises from the enterprise big data platform Qichacha,measure their survival rate and conduct empirical tests.A double difference model was used to test the effect of tax reduction and fee reduction by using small and micro enterprises in various industries in Hubei Province as the experimental group and non-small and micro enterprises as the control group.The research results show that the policy of tax reduction and fee reduction can significantly improve the survival rate of micro and small enterprises;further,through the industrial heterogeneity study,it is found that the tertiary industry is more sensitive to the policy of tax reduction and fee reduction,while the primary and secondary industries have a weak policy effect due to fixed asset turnover and other reasons.Accordingly,from the perspective of tax system optimization,the article puts forward suggestions to improve the tax reduction and fee reduction policies for small and micro enterprises in terms of the precision of policy delivery,the perfection of policy system,as well as the simplification of tax handling process and policy performance evaluation.