The Impact Of Environmental Regulation On Corporate Tax Burden

Since the reform and opening-up,Chinese industrial economy has experienced 40 years of extensive industrial growth.And environmental problems are becoming serious increasingly.Thus,in Communiqué of the Third Plenary Session of the 18 th Central Committee of the CPC,we emphasized the establishment of a systematic and integrated system of ecological civilization and the protection of the ecological environment by regulation.As an important tool for national governance,tax is an important means to promote the construction of modern market system,to allocate social resources rationally and to build social justice.To deal with the serious environmental pollution,the environmental regulation combines with the mandatory features of tax.This can make environmental regulations more operable,lower implementation cost and wider coverage.The environmental regulation with the tax system is a "double-edged sword".Therefore,it is of important reference value to test the influence of environmental regulation on the tax b urden of the company and to analyze its mechanism.In this paper,we use Pooled OLS,2SLS This paper examines impact of environmental regulations on corporate tax burden,using Pooled OLS and 2SLS,taking the A-share manufacturing listed companies from 2009 to 2015 in Shanghai and Shenzhen Stock exchanges as samples.Empirical results show that: With the increase of the intensity of environmental regulations,the corporate overall tax burden,income tax burden and value-added tax burden are significantly decreased.In further study,we discuss the influence from nature of property rights,corporate size,whether belong to the heavy pollution industries and tax enforcem ent.We find that the overall tax burden reduction of state-owned corporations is lower than that of non-state-owned corporations significantly.Meanwhile,the overall tax burden decline of large-scale corporations is lower than that of small corporations evidently.And the heavy pollution industry corporations overall tax burden decline more than the heavy pollution industry corporations.Also,the overall tax burden reduction of high tax enforcement group is lower than the corporation of which enforcement is low.Moreover,the reduction of tax burden by environment regulations enhance the corporate value significantly.Finally,combined with the results of the study,the article puts forward specific policy suggestions for the government,the company and t he taxation department in order to make economy and environment improve harmoniously.It enriches the research on the economic consequences of environmental regulations,and expands the influence factor of the corporate tax burden analysis.