Research On Incentive Effect Of Income Tax Preference On Innovation Input

With the gradual slowdown of China’s economic growth,China’s economy has entered a "new normal".Under the new normal economy,stable growth,structural adjustment,and implementation of innovation-driven strategies are the main goals of economic development.Taxation policies are important tools for stable growth,structural adjustment,and high-quality economic growth.In order to achieve this goal,China has formulated a large number of tax reduction and fee reduction policies,of which income tax concessions are the main component.However,since the government implemented tax and fee reductions,whether or not it has really increased the level of innovation in the enterprise has played a role in promoting innovation,and whether this driving effect is sustainable.Scholars have always had different conclusions.This article introduces the perspective of profitability,uses the panel data of China’s A-share listed companies from 2010 to 2018 to construct an interactive item model,and simultaneously performs a group regression of high-tech enterprises and non-high-tech enterprises to discuss the income tax incentives for the current innovation investment and the next innovation investment.The incentive effect of the company is analyzed,and the regulating effect of profitability is analyzed.The study finds that the income tax incentives have a significant incentive effect on the current technological innovation investment of all enterprises,which can increase the level of enterprise innovation.Under certain profitability,companies expect income tax incentives to compensate for costs,increase revenue,and reduce corporate burdens to invest in technological innovation.However,this incentive effect is relatively weak.Income tax incentives may not be the main driving force for enterprises’ current technological innovation investment.The incentive effect of preferential policies on high-tech enterprises’ current innovation investment is stronger than that of non-high-tech enterprises;profitability can positively adjust the effect of income tax incentives on current innovation investment.The specific performance is that with the increase of corporate profitability,income tax incentives on current innovation The incentive effect of investment isgradually increasing.This is because the higher the profitability of a company,the smaller the limit on the funding of innovation.In addition,companies with good profitability may need to obtain new development through innovation.The stronger the role,this regulatory effect is applicable to both high-tech enterprises and non-high-tech enterprises;the incentive effect of income tax incentives for the next period of innovation investment is different for high-tech or non-high-tech enterprises,and the specific performance is that it can only be used for high-tech enterprises.Under Creative industries generate investment incentive effects,while for non-high-tech enterprises no significant effect,suggesting that for already enjoy preferential income tax of non-high-tech enterprises,income tax incentive for its innovation investment is not persistent.Based on the above results,this article finally puts forward suggestions for the current tax preferential policies: diversify tax preferential policies,actively explore a reasonable multi-directional tax preferential policy system,and attach importance to circulating tax incentives to strengthen the implementation of tax incentives;establish dynamic tax rate supervision The system explores differential tax rates,profitability,or innovation input levels after a certain percentage increase in applicable tax rates.The establishment of a new type of income tax incentives,such as giving additional income tax incentives to the growth part of innovation inputs,increases the persistence of innovation inputs.;Explore the timely tax rate policy,in order to respond to sudden events and force majeure factors,timely introduce targeted tax relief policies,such as a series of preferential tax policies for this new type of coronary pneumonia virus epidemic.