Research On The Guarantees Of Local Financial Revenue Under The Background Of Tax Cut And Fee Reductions

Since 2016,China has implemented the policy of Tax Cut and Fee Reductions,especially the implementation of large-scale policies in 2019,which provides a new driving force for the development of enterprises,but it has also resulted the contradiction between local fiscal revenue and expenditure,especially for the county governments.For the county governments,there are a lot of grassroots government affairs,most of the expenditure is rigid,the amount of it increases year by year.However,the impact of tax reduction on Tax Cut and Fee Reductions will put pressure on county fiscal revenue in the short term.Under the background of Tax Cut and Fee Reductions,taking Suiping County as an example,this paper analyzes in detail the situation of county revenue and expenditure and the influence of it,in order to find out the point of contradiction and give reasonable suggestions.First,based on the background of Tax Cut and Fee Reductions,first of all,described the background and research significance,and comprehensive the related literature of domestic and foreign.Then explains the research methods,the innovations and shortcomings.Secondly,the paper gives the concepts and theories,introduces the concepts of Tax Cut and Fee Reductions,using Keyne?s theory of macro intervention,Laffer?s theory of supply and the theory of fiscal balance,local fiscal revenue and expenditure for research.Thirdly,through the detailed analysis of county financial revenue and expenditure,and the balance of pressure.Explain the problems of income and expenditure.Fourth,taking Suiping County as an example to illustrate the fiscal revenue and expenditure,and the problems under Tax Cut and Fee Reductions,generally speaking,there are some problems,such as the mismatch between administrative power and financial power,the pressure on fiscal revenue,the continuous increase of rigid expenditure and the deepening of fiscal revenue contradiction.The fifth part gives the countermeasures to guarantee the local financial revenue,such as reasonably dividing administrative powers and spending responsibilities,optimizing fiscal revenue structure,strengthening fiscal expenditure management and optimizing industrial structure,so as to promote the local fiscal revenue,but these recommendations still need to be validated.