Research On The Influence Of Tax Burden On Economic Financialization From Both The Macro And Micro Perspective

At present,the world is experiencing the combined impacts of a pandemic and major changes both unseen in a century,the world economy has suffered a severe setback,and the global supply chain and industrial chain are facing stagnation.Coupled with the aftermath of the post-financial crisis,China’s economy is facing unprecedented challenges.However,in contrast to the persistent downturn of the real economy,China’s financial industry is developing rapidly,financial instruments are becoming more and more abundant,and the development trend of financialization of the economy is becoming more and more obvious.As an advanced form in the process of economic market development,financialization is indeed helpful to regulating the relation between supply and demand through the rapid flow of funds,which can effectively improve the efficiency and effectiveness of social resource allocation and guide the flow of capital to industries with higher social demand,playing an immeasurable role in promoting China’s economic development.It can be said that the market-oriented reform since China’s reform and opening up has also accompanied the process of financialization of China’s economy.But the problem which cannot be ignored and urgently needs to be dealt with is that in the current operation of China’s economy,space for the survival and development for the manufacturing industry as the representative of the real economy has been severely squeezed by the financial sector and real estate as the representative of the virtual economy,so that the real economy,which has been already facing excess capacity,rising costs,falling profitability,financing difficulties and financing expensive,is being delivered a further blow and repeatedly hit hard.Caught in the difficulty of failing to obtain the average social rate of return on investment,real enterprises have to turn to the virtual economy like securities which is of short investment cycle,high return expectation,and light asset allocation.inducing the existing rigid climbing scale of financial investment continues to expand,and the pressure on China’s economy of "off the real to the virtual" is continuously climbing.In view of this,the issue of financialization of the economy has aroused the key attention of the academic and practical circles,and all circles agree that we should focus on revitalizing the real economy,firmly grasp the essence of the virtual economy serving the real economy,and effectively prevent the excessive capital flowing to the virtual economy which may cause the real economy "fat and weak".This is not only a national strategic issue to prevent and resolve major financial risks and build a modernized economic system,but also an important issue to promote the modernization of national governance system and governance capacity.In exploring the causes and countermeasures of financialization of the economy,this paper finds that,as an important regulatory instrument to alleviate the contradiction between supply and demand and optimize resource allocation,tax burden is not only a key element that touches the sensitive nerve of the real economy and directly affects the diversion of the real economy’s decision-making,but also,as a core component of a country’s tax system,plays an important role as an effective counter-cyclical policy to avoid financial risks and boost the real economy.Based on this,this paper conducts an in-depth research on how tax burden influences the financialization of the economy,in an attempt to answer the question of whether tax reduction,as the core element of the policy of "combination of tax reduction and fee reduction",can curb the tendency of financialization of the economy and become a "life-saving straw" to revitalize the real economy,and the question of what the functions and effects are by releasing taxreduction bonus to the real economy,so as to seek the remedy to promote China’s economy from both the theoretical and practical level to "move away from virtual to reality".This paper focuses on "two perspectives and one principal line" to explain the basic theory,mechanism and final effect of tax burden affecting economic financialization,i.e.,framing two perspectives of both the macro and micro and one principal line of financial asset allocation,and positioning the specific analysis of macro tax burden,micro tax burden,economic financialization and enterprise financialization,and the relation between the two as the main contents.This paper consists of seven chapters.First,this paper explains its research background and significance,content and,methodology,approaches and framework,as well as priorities,difficulties and innovations.In this way,the logical origin and research destination of this paper are proposed,i.e.,to investigate whether tax burden has an impact on economic financialization,and to consolidate the foundation of the whole research by clarifying the ideas,focusing on the content and optimizing the methods.Secondly,this paper carries out an extensive literature review on tax burden and economic financialization.By comprehensively and systematically grasping the connotation definition,index selection and influence relation of previous research results on the four-dimensional subjects of macro tax burden,enterprise tax burden,economic financialization and enterprise financialization,this paper precisely finds out the research breakthrough and narrows the principal direction of the later research.Thirdly,this paper effectively agrees on the concepts of two maj or categories of key words,namely,tax burden and economic financialization,to provide the same terminological environment throughout the paper,which is also an important guarantee for the logic,systematization and accuracy of the entire research.At the same time,based on the financial development theory,Marxist financial theory,neoclassical investment theory,Cost-benefit theory and other related theories,the mechanism of tax burden affecting economic financialization is analyzed from the macro and micro levels,which is briefly summarized as"tax burden-asset allocation-economic impact" and "tax burden-production cost-investment decision".and the path of tax burden affecting economic financialization is confirmed through economic analysis.Fourthly,this paper determines the measurement indexes of each subject,and on this basis,it tries to conduct a panoramic and hierarchical analysis of the current situation of macro tax burden,enterprise tax burden,economic financialization and enterprise financialization in China with a more rigorous quantitative analysis and statistical description,in order to grasp the overall layout and heterogeneous characteristics of tax burden and economic financialization in China in a more systematic,solid and precise manner,and provide a fundamental basis for adjusting the level of tax burden,improving the tax system structure and suppressing excessive financialization behavior.Fifthly,this paper analyzes from the macro perspective whether the macro tax burden level had a causative effect on the degree of financialization of the economy from 2007 to 2020 under the premise that the macro tax burden measurement caliber and economic financialization measurement indexes are defined in the previous chapters,and based on calculating the macro tax burden level of heavy calibre and degree of financialization of the economy in China.The results show that the level of macro tax burden has a significant contribution to the degree of financialization of the economy,i.e.,the heavier the macro tax burden is,the deeper the degree of financialization of the economy is.When curbing the economy from "off the real to the virtual",properly resolving financial risks,actively promoting tax reform,improving tax policies,and determining a reasonable level of macro tax burden should be taken into account as important causal factors.Sixthly,this paper systematically investigates the impact of tax reduction on enterprise financialization from the micro perspective,based on the enterprise financialization research under the dimension of enterprise tax burden which is cognized as the "quasi-natural experiment" by high-tech enterprise in China.The results show that tax reduction has a significant inhibitory effect on enterprise financialization in general,which is mainly due to the fact that the policy of high-tech enterprise recognition is conducive to stimulating enterprises to focus on innovation and R&D,and helping to reduce the tax burden of real enterprises,thus creating an endogenous incentive for real enterprises to focus on industrial operations;further research shows that the policy effect of high-tech enterprise recognition is more significant among highly leveraged enterprises and large enterprises.Further research shows that the policy effect of high-tech enterprise recognition is more significant in high-leverage enterprises and large enterprises.From the perspective of cost burden of enterprises,the paper provides new perspectives and new ideas to grasp the endogenous mechanism of enterprise financialization and to weaken the tendency of "off the real to the virtual" for real enterprises.Finally,based on the above theoretical and empirical analyses,the paper proposes the following countermeasures to optimize the tax burden in order to alleviate the financialization of the economy:to uphold the principle of appropriateness and build a long-term mechanism to reduce taxes and fees;to clarify the direction of tax reform and continuously optimize the configuration of the tax burden structure so as to help the reform open up new horizons in the new development stage.At the same time,we should make concerted efforts to deepen the VAT reform to effectively alleviate the pressure of cash flow of enterprises;optimize the design of corporate income tax system and improve the return on investment of real enterprises in support of enterprises effectively enhancing the "sense of acquisition" of tax burden reductions.In addition,we should enhance the ability of enterprises to innovate by taking more powerful tax support policies;continue to promote the reform of the social security collection system to stimulate the vitality of business development;and take multiple measures to build internal and external synergy mechanisms to reduce the comprehensive operating costs of enterprises,and effectively promote the sustainable and healthy development of the real economy.