Research On The Effect Of Tax Cuts For Small And Micro Enterprises In Hebei Province

Since 2008, the state practices a series of structural tax cuts. These policies reduced small and micro enterprises tax burden in our province, to alleviate the financial pressure of small micro enterprises, played a significant role in promoting the enterprises’strength and confidence. The tax cuts has a positive effect in accelerating small and micro enterprises industrial upgrading, implementing small and micro enterprises cluster development and promoting our province economic restructuring transformation.In this paper, based on the study of tax theory and practice on the Keynesianism and supply-side economics which played a profound impact on the West economic development, then described the general effect of tax cuts. Through introduced the changes of the income tax, turnover tax, stamp duty and other tax cuts to improve the development environment for the small and micro enterprises, to understand the tax environment for small and micro enterprises in our country. By focusing on the present condition and the restricting factors of small and micro enterprises in our province, summarized six aspects in the effect of tax cuts for small and micro enterprises:to reduce costs, to boost the development of small and micro enterprises, to accelerate the transformation of small and micro enterprises, to improve the structure of the revenue base, to promote industrial structure adjustment, to achieve healthy economic growth. Tax cuts policy plays a positive role in developing the small and micro enterprises and the economic in our province. But at the same time, we should pay attention to the theoretical and practical problems which appearing during the execution of tax cuts:the standards of enjoy preferential policies have been improved, a limited number of enterprise which enjoy the tax cuts, adding to the tax burden of some industry, tax cuts changes frequently creating a great stress to the tax administration in daily work and the compliance cost is high. To seek available solutions should be from three aspects of policy makers, policy implementers and beneficiaries of policies in point. For the policy makers should unify the definition of small and micro enterprises and enrich the contents of the tax cuts policy. For the policy implementers should establish a long-term planning and improve the management level and service quality. For the beneficiaries of policies should strengthen business training to improve the professional quality of employees.