Study Of The Technical Progress Of The Tax Incentives

Solow added technology as outside variable to economic growth model, and the new economic growth theory takes technology as endogenous variable, which is the important factor of economic growth. Nowadays competition of the all the countries is the competition of technological strength. How should one government promote its national technological progress, what effect tax policy makes on technological progress and how to utilize tax policy to promote technological progress, will become the main content of this paper.The conception of technological progress is that " by definite resource, knowledge can make (1) output to increase, (2) product' quality to improve ". The scientific and technological progress includes the technological progress, and the technological progress includes the technological innovation. The technological progress relies mainly on enterprise, which use the same input to get more or more progressive products in process of production. Technological progress results in the moving of possibility curve.The technological progress includes four stages, basic research , research and develop , production , and commercialization . The route of technological progress is the description of how to realize basic research and R&D. There are two kinds of technological progress route, one depends on enterprise's own technical forces to carry on R&D activity; Another one obtains technology that enterprises need through the technology import. The chosen of technological progress route depends on enterprise's scale, technological situation, fund strength, and the development strategy. Different enterprises' technological progress route causes different cost.The effect of tax on enterprise's technological progress embodies in enterprise's technological progress cost and income. Since tax mainly influences technological progress capital, the capital category this paper use is deprecation, manpower capital, and fund cost. The income forms of technological progress of independent development are sales revenue and royalty payment. Technological progress incomeinvolves uncertainty, which mainly comes from the risk of the technological progress. Generally speaking, tax has reduced the investment risk while reducing the investment return, which encourages enterprises to carry on more technology activity. Introducing foreign appraising methods and conclusions of tax incentive tools can make us have deeper understanding of the relationship of technological progress and tax. The main methods are company's investigation methods, analysis of investment model, analysis of the production structure, and general equilibrium analytical method. The analysis of investment model can be used for industry analysis. The analysis of the production structure is used for macroscopic analysis. And general equilibrium analysis can only receive the relative conclusion. The trend of the research approach is to combine these analytical methods.Tax interferes technological progress by incentive tools which include tax exempt, reduce of tax rate, tax credit, tax reduction, and accelerated depreciation, etc. These tax incentive tools will generate different effects on enterprises' capital, realize different progress goal and suitable for different technological progress stage.The tax incentive policy of technological progress of our country has greatly promoted the improvement of the technological strength of Chinese enterprises. But there is obvious deficiency in our technological progress tax policy. The incentive tax policy lacks planning and systematicness, the favorable target of the tax policy sets up according to enterprise's identity, the favorable stage of the tax incentive is chosen improperly, the tax allowance is unreasonable, and the supervision and management of the tax policy is relatively weak. We should make the tax policy of the technological progress according to the current situations of the national industrial policy and development in science and technology. In the route chosen of the technological progress, we should rely main...