Research Of Fiscal And Tax Policy On Promoting The Cultural Industry In China

Chairman Xi’s socialist ideology with Chinese characteristics in New Ages clearly stated that the overall layout was the “Five in One” theory including economic,political,social,cultural,and ecological civilization construction,and emphasized that China must be confident in our path,in our theory and in our system as well as our culture.Cultural confidence is the fundamental force in the development of a country and a nation.The report of the 19 th National Congress of the Communist Party of China pointed out that the period between nowadays and 2020 is the decisive period for building a moderately prosperous society.Changes of the major social contradictions in our country should be linked with our plans for economic construction,political construction,cultural construction,social construction,and ecology civilization construction.From 2020 to 2035,the degree of social civilization in our country would reach a new height,the country’s cultural power would be significantly enhanced,and Chinese culture’s influence would be more extensive and thorough.The development of cultural industry is an important part of the cultural development.For a long time,governments at all levels in China have attached great importance to the development of cultural industries.The central government has issued a number of industrial development plans and supporting policies for fiscal and taxation.Local governments also support cultural industry development through various means such as financial subsidies.In contrast,Chinese cultural industry has long been in a predicament that the supply cannot effectively meet the demand,such as the lack of profitability of cultural enterprises,the low technological content of cultural products,the insufficient level of development of cultural industries,and the weak cultural appeal of countries and nations.Developed countries have continuously exported values and ideology through the export of cultural products,which has seriously threatened Chinese cultural security.Therefore,we must continue to improve Chinese cultural industry,rationally allocate financial resources,reduce corporate tax burden,promote cultural enterprise innovation through the proper guidance of the government,enrich cultural product supply,improve the competitiveness of the cultural industry,and effectively safeguard the country’s cultural security.The theoretical significance of this paper lies in: to provide value objectives for optimizing the fiscal and taxation policies of the cultural industry by realizing the structural reform of the supply side of the cultural industry;to further rationalize the relationship between the government and the market to clarify the role of the government and market in the cultural industry structure;to further enrich theories related to the development of cultural industries.The practical significance of this article lies in: to optimize the structure of cultural industry products,improve the technical level of cultural products,and enrich the cultural connotation of cultural products;to innovate cultural product supply methods,promote the integration of culture and related industries;to optimize the fiscal and taxation policy system for the cultural industry,and enhance targeted and effective fiscal and taxation policies.This article follows the logic of "theoretical analysis-empirical analysis-policy advice" and uses a combination of normative analysis,empirical analysis,and comparative analysis to conduct the research.This paper is divided into three parts with seven chapters.Theoretical analysis is in chapters one to three,empirical analysis is in chapters four to six,and policy recommendation is in chapter seven.The first chapter is an introduction,mainly describing the research background,clarifying the theoretical and practical significance of the study,expounding the research ideas and research framework,demarcating the scope of the research industry,and pointing out the difficulties of this study and possible innovations.The second chapter summarizes the literature and sorts out the related research results of the fiscal and taxation policies of the cultural industry in recent years,including the macro and micro level influence factors of the cultural industry development,the theoretical basis for the government to support the development of the cultural industry,the financial industry tax policy target and policy selection,the assessment of the effectiveness of fiscal policies,and the optimization and improvement of fiscal and taxation policies in the cultural industry.Based on the findings of previous studies,it is found that relevant research on the development of existing cultural industries has not identified the core factors affecting the profita bility of enterprises,and has not paid enough attention to the operating behavior of cultural enterprises;the relevant research on fiscal industry tax policies has not been analyzed.There is limited discussion about the impact of fiscal and taxation measures on the profitability and operating behavior of cultural companies.This indicates the direction for optimization theory and empirical analysis of this paper.The third chapter is the theoretical analysis of cultural industry policy choice from the perspective of supply-side structural reform.This chapter first introduces the objectives and characteristics of supply-side structural reforms,and clarifies the path to achieve the reform of the supply side of the cultural industry.That is to meet the needs of cultural consumption,to improve the level of factor utilization,to integrate the cultural value chain and improve the government support methods,and finally to propose three relationships in the improvement of the cultural industry policy system.The fourth chapter analyzes the impact of innovation and industrial chain integration on the culture industry.Firstly,it analyzes the influence of innovation of cultural enterprises,expansion of capital scale,and integration of industry chain on the profitability of enterprises,and empirically examines the core factors on the profitability of cultural enterprises.Then it analyzes the related factors that affect innovation and integration of industrial chains.The empirical results show that upgrading the scientific and technological level and cultural connotation of products is the only way for cultural enterprises to win the favor of the market.The balance between production and innovation is the realistic choice for cultural enterprises to speed up their creative realization.Cultural enterprises should continue to increase general technical reserves and accumulate talents to maximize the value of creativity through the integration of the industrial chain.The conclusion of this chapter lays the foundation of the fifth chapter for discussing the effects of fiscal and taxation policies on corporate innovation and production behaviors at the micro level.The fifth chapter analyzes the impact of fiscal and taxation policies on the development of cultural industries.The first half of this chapter concludes that Chinese cultural industry policy is essentially a "selective" industrial policy by sorting out the evolution of Chinese cultural industry policy.Chinese governments at all levels generally rely on administrative methods and fiscal policies to "selectively" support certain types of industries.Chinese fiscal and taxation policies of cultural industry have the characteristics including fiscal expenditure lead resource allocation and relatively simple preferential taxation measures.The second half of this chapter classifies the types of fiscal subsidies and tax incentives in detail and empirically examines the impact of different fiscal and taxation policy choices on the development of cultural industries,and concludes that "government-selective" fiscal subsidies and local government financial subsidies do not increase the ability to innovate,however,only to increase the income of enterprises.We also concludes the heavy taxation burden of innovative cultural enterprises.The research in this chapter provides data support for the related suggestions for improving fiscal and taxation policies.The sixth chapter is the experience of the cultural industrial policy in developed countries.In this chapter,after combing the cultural industry policies of the United States,France,Japan,and South Korea,it is discovered that most of the governments of developed countries give large amounts of tax concessions to cultural industries.The U.S.government do not directly use fiscal policies to support the development of cultural industries.France,Japan,and South Korea adopted the Fiscal policy supports the strength of cultural industries,which are different from the U.S..Although countries have large differences in fiscal policy orientation and specific measures,it is very clear that they continue to promote the research and innovation of cultural enterprises,increase the profitability of cultural enterprises,enrich regional features of cultural products,and maintain the security of culture.The policy choices of various countries can provide experience for our country to optimize the fiscal and taxation policy system of the cultural industry.The seventh chapter is the optimization and improvement of cultural industry fiscal policy under the perspective of supply-side structural reform.Based on the findings of the previous study,this chapter clarifies that the main objectives of optimizing the fiscal and taxation policies of the cultural industry are to improve the supply quality of cultural products and to enhance the profitability of cultural enterprises,and to clarify that the principle of quality guidance and market-oriented principles are to optimize the financial and taxation system of the cultural industry.Then,according to the main objectives and basic principles,suggestions are made to optimize and improve the fiscal and tax policy system of cultural industry: in terms of adjustment of expenditure structure in the central government,we should increase the subsidy scale of the central government for innovation and project construction of cultural enterprises,and appropriately reduce the number of local governments for cultural enterprises.Funding for innovation and project construction should increase the subsidies granted by governments at all levels for enterprises to develop characteristic cultural resources and cultivate cultural professionals.As regards optimization of fiscal expenditure methods,there has been proposed to stimulate innovation dynamism,optimize corporate financing environment,and increase personnel training.Strengthen the development of resources,promote the integration of industrial chains and expand the scale of cultural consumption,and optimize the “government-selective” spending methods such as consumption subsidies for cultural industries,project funding,various types of incentives,and social cooperation and other "market-oriented" fiscal expenditure methods.In the aspect of improvement of taxation policies,we should increase financial and taxation policies and measures to promote cultural industry research and development,capital expansion,talent cultivation,resource development and product export.The innovations of our study are as follows: First,the empirical results show that there is a positive “U”-type correlation between the income and net profit of cultural enterprises and the cultural and scientific content of their products,and that cultural enterprises operating across industries had stronger profitability.Fiscal policy should be inclined to cultural enterprises with strong cultural innovation capabilities but insufficient profitability,and increases the support for cultural enterprises to integrate the industrial chain.Second,our study proposes that the structure of the government expenditures at different levels should be adjusted to increase the subsidy scale of the central government for cultural and scientific innovation and the construction of major projects,and the subsidy of local finances for the development of specialized resources and the training of professional personnel should be intensified in order to effectively solve the problem such as insufficient funds,adverse selection of projects,and short-sighted subsidies.Third,our study proposes that the “marketization” orientation of fiscal expenditure should be clearly defined,the “government-selective” fiscal subsidy model should be optimized,and the “market-oriented” fiscal expenditure method should be developed to effectively address the problem of information asymmetry in financial subsidies and bring market into active role in resource allocation.