Research On The Impact Of Tax Burden On China's FDI

With the deepening of economic globalization,the trend of regionalintegration is increasing.After years of development,foreign trade and foreign investment have reached a high level in the global.The total amount of world trade is growing and the total amount of globalFDI is higher and higher.The impact of the global economic crisis caused by the subprime crisis from the year 2007 to 2009,the increasing rate became lower,the total amount of global FDI even got a negative growth and can't reach the level before the outbreak of the economic crisis.In the context of global economic slowdown and weak recovery,no matter developed countries or developing countries they all take measures of tax cuts to attract foreign investment and drive economic growth.In this international environment,China's tax policy except "replace business tax with VAT" as scheduled,the other tax policy remained stable.At this time civil society,academia and business community complained about that domestic tax burden is too heavy,even appeared "Vote with the foot" phenomenon to which we had to pay attention,and we should re-examine the real tax burden in China.China and ASEAN are close neighbors and friends.With the steady progress and implementation of the Belt and Road Strategyas well as the pace acceleration ofChina-ASEAN Free Trade Area construction,the economic and trade exchanges become more frequent between the two sides,economicties become increasingly close.However,China and the vast majority of ASEAN countries are developing economies,they all desire for the kinds of sources to promote economic development.Moreover,similar to the economic base,environmental and resource endowments,and also alternative industry level,China and ASEAN will inevitably lead to "capital" competition.Exceptothersimilar circumstances,the tax policy to attract the elements of resources has a significant role in the process of competition.Where the tax burden is lower,where the profit margins are higher.Liquidity resources will be "rational choice" and "vote with your feet" and flow to the higher profit place.So the ASEAN countries are competing to reduce the tax rate,to take tax incentives and other substantive measures to reduce the tax burdento exacerbate the contention of liquidity.This paper takes the most representative foreign direct investment(FDI)of liquidity resources as the starting point,compares the tax burden between China and ASEAN countries,and judges the status using international tax burden,final point is to reveal the problems through the status quo of China's tax burden.Besides,this paper proposes targeted and reasonable recommendations basing on the problems.Following the above ideas,in the first chapterthe author introduces the background,ideas and innovations and shortcomings of this paper;In the second chapter,the paper summarizes the theory of optimal tax burden,the theory of tax competition,and the relationship between tax burden and FDI,and makes a theoretical preparation for the subsequent argument.In the third chapter,from the economic and trade relations between China and ASEAN,FDI is introduced,and then the reasons behind FDI competition are analyzed--from the comparison of taxation system to the comparison of macro tax burden,layers of in-depth analysis.In the fourth chapter,we return to China's current domestic tax burden situation,analyze of China's current embarrassing situation of "internal and external difficulties"(Confession tax burden,the external response to the wave of tax cuts in attracting foreign capital inflow in a passive position)".In the fifth chapter,according to the problems found in the above research,combined with China's national conditions,this paper puts forward targeted solutions,with a view to playing a revelation and reference for China's tax reform and the healthy development of the economy.