The Economic Effect Of Tax Cuts And Fee Reductions

Since the reform and opening up,China’s economy has maintained rapid growth for more than 40 years and has become the second largest economy in the world.However,with the change of domestic and foreign environment and conditions,the extensive economic growth model relying on external demand,factor input and scale expansion in the past is no longer applicable to the stable,sustained and healthy development of China’s economy at this stage and cannot meet the real needs of the people’s growing good life.The report of the 20th CPC National Congress pointed out that high-quality development is the primary task of building a socialist modern country in an all-round way.In order to achieve this goal,the country has issued many economic and financial policies to optimize the economic and industrial structure,change the mode of development,and seek the impetus for healthy and stable economic development.In recent years,China has continued to implement the combined tax reduction and fee reduction policy,focusing on reducing government revenue,multiplying market vitality and promoting high-quality economic development.Scientific evaluation of the economic effect of tax and fee reduction is of great practical significance for further deepening the supplyside structural reform and improving the fiscal and tax incentive policies.Firstly,this thesis combs the existing research at home and abroad,analyzes the economic effects of tax reduction and fee reduction on high-quality economic development based on the five development concepts of innovation,coordination,green,openness and sharing,and puts forward three relevant research hypotheses.Secondly,based on the panel data of 31 provinces,cities and autonomous regions from 2000 to 2020,this thesis measures the intensity of tax reduction and fee reduction,and constructs an evaluation system for high-quality economic development,uses the "vertical and horizontal grading method" to calculate the empowerment,and systematically explores the relationship between the two from the macro level.At the same time,the robustness of the regression results is tested by replacing economic variables,replacing empirical methods and instrumental variables.This thesis analyzes the heterogeneity of regional and five economic development concepts.This thesis also discusses the long-term effect and spatial spillover effect between tax reduction and fee reduction and high-quality economic development.Finally,based on the empirical results,it is concluded that the greater the intensity of tax and fee reductions,the higher the economic high-quality development index.For each 1%decrease in the ratio of general public budget revenue to GDP,the economic high-quality development index increases by about 0.17%;Reducing and fees has significantly improved the index of coordination,openness,and sharing,but has no significant impact on innovation and green indicators;The promotion of tax and fee reductions for high-quality economic development in the western region is even more evident Further analysis reveals that tax and fee reductions have long-term and spatial spillover effects on high-quality economic development Based on the above research conclusions,this article proposes policy recommendations from such aspects as increasing the intensity of tax and fee reduction,coordinated development between regions,better promoting enterprise innovation and environmental protection,and ensuring the long-term effect of tax and fee reduction.