Research On The Effects Of Tax Reduction Policies Under The New Situation

The goal of the tax reduction policy under the new situation of China is to reduce the tax burden of enterprises and promote the sustained and stable growth of our economy in the permitted scope of financial resources.However,the existing research is mainly focused on the macro level of tax burden analysis and policy analysis,and the specific effects of the new series of tax cuts on the real regional economy still lack the support of corresponding empirical data.In this sense,the paper analyzes the effect between tax policy and economic growth,and industrial structure,investment and consumption firstly according to the research of tax,tax,the concept of the tax cuts and the Keynes school which impacts the development of western economy deeply and the supply school's basic theory of tax cuts.Secondly,the paper reviews the history of tax reduction policies such as value added tax and income tax since 2008,and summarizes three aspects of tax cuts policy making,including investment and consumption,economic structure,and improvement of people's livelihood.Next,taking Yangzhou Development Zone as a model,the paper investigates and analyzes the cost effect,incentive effect,upgrade effect,fiscal effect and international effect caused by tax reduction policy on the real economy of Yangzhou Development Zone.The conclusion is that the tax reduction policy has positive effects on all aspects.On the one hand,it has found that the tax reduction policies are acute,complicated tax rates,entrepreneurial innovative industries and small and micro enterprises'investment and innovation benefits which are limited and so on.On the other hand,it found that the tax department service management is insufficient,the policy and software update has not formed the resultant force,the financial personnel's quality ability is lacking,and the tax distribution of the central and local interest is uncertain during the course of the tax reduction policy implementation.Finally,the paper makes some suggestions from the point of view of policy makers and policy implementers including perfecting the tax statutory,degenerating tax system,increasing the preferential policies related to pioneering and innovative enterprises and small and micro enterprises,perfecting the service management,optimizing the software process,improving the professional quality of the financial personnel,adjusting the local government revenue and expenditure system and etc to improve the tax reduction policy in the formulation and implementation,give play to the positive effects of tax reduction policies,accelerate the long-term development of China's economic stability.