Study On Industrial Tax Policy And Optimizing Of Industrial Structure

The industrial structure is closely related to the economic growth. The changes in the industrial structure will result in the improvement of the productivity, which will promote the economic growth. In order to shorten the industrial structure evolution progress and promote the economic growth, it is important to 1) establish appropriate industrial structure policy; 2) take actions to correct the unfavorable progress and accelerate the upgrading of the industrial structure. Since the launching of the reform and open policy, Chinese government has established a large amount of industrial policy, including tax policy. However, the systematic analysis of the tax policy on the industrial structure evolution progress has been insufficient. This paper examines the impact of the tax policy on the changes in the industrial structure by combining the industry structure theory with the tax theory; discusses the impact of Chinese tax policy on the changes of the industrial structure based on the profound analysis of the country's current industrial structure; and makes recommendations to the future industrial structure tax policy in China.This paper combines the industry structure theory with the tax theory, uses qualitative analysis with quantitative analysis, researches the basic tax revenue and the changes about the three industries, and analyzes the impact of the tax policy on the evolution of the industrial structure from the aspects of demand and supply. The paper is structured as follows. First, a review, along with a comment is made on the existing literature on tax policy and industry structure. Then introduces the rationale, objectives, measures and the role of the industrial structure tax policy. Second, introduces the basic tax revenue about the three industries researches and the changes about the three industries, as a conclusion, tax is growing faster than economy. Third, the analysis of the impact of the tax policy on the evolution of the industrial structure from the aspects of demand and supply, the demand mainly includes the effect on the rate of middle demand and last demand, the structure of expense demand and investment demand, the supply mainly includes the effect on the quantity and quality of labor force, the quantity and direction of investment, the progress of technique. China's tax policy to improve national education standards and encourage R & D investment technologically advanced industries to reduce the tax burden on many aspects, such as certain defects make use of our raw materials and energy utilization is low, thereby leading to the demand-oriented industries among the proportion of relatively higher; Interest income tax lapse social insurance and inheritance tax and gift tax in the absence of personal income tax is unfair tax-regional differences consumption tax lags behind economic development, leading industry tax burden is too high, and tax policies to encourage technological progress hampered by inadequate and so the optimization of the industrial structure in China. Last, puts forward the conclusion and suggestions: to optimize Chinese industrial structure tax policy, first of all, in terms of the general direction, it should be done to rectify reverse regulation, to keep relative neutrality, to value harmony, and to optimize instrumentality; secondly, in terms of the detailed actions, the tax burden should be reduced, the current tax categories should be perfected, new tax categories should be added and the tax expenditure policy should be perfected.