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Research On The Impact Of Tax Reduction On The Sustainability Of Guizhou Local Financ

Posted on:2024-05-07Degree:MasterType:Thesis
Country:ChinaCandidate:H H LiuFull Text:PDF
GTID:2569306935463744Subject:Tax
Abstract/Summary:PDF Full Text Request
At present,our economic environment is complex and the international environment is full of variables.In order to cope with the current complex macroeconomic situation and comply with the structural reform of the supply side,the tax reduction policy has been put forward as an active fiscal policy.The well-targeted implementation of tax cuts has reduced the burden on enterprises,invigorated the market,deepened the division of labor,and promoted steady economic growth.While the tax reduction policy plays a "booster" role in the economy and promotes high-quality economic development,it also impacts local fiscal revenue in the short term.However,local fiscal expenditure presents a rigid increase phenomenon,and the mismatch between local fiscal revenue and expenditure becomes increasingly prominent,affecting the sustainable development of local finance.At present,Guizhou is in a critical period of economic development and transformation.In the process of economic transformation,Guizhou faces great financial pressure.What impact will the implementation of tax reduction policy have on Guizhou’s finance and what is the sustainable ability of Guizhou’s local finance at this stage? In this context,it is necessary to explore the impact of tax reduction policies on local fiscal sustainability in Guizhou.Based on the framework of China’s fiscal and taxation system,this paper analyzes the impact mechanism of tax reduction on fiscal sustainability from the theoretical level.Then,this paper selects 84 county-level panel data in Guizhou from 2014 to 2020,uses the dynamic panel model,and adopts baseline regression,mechanism test,robustness test,heterogeneity test and long-term effect test.This paper makes an empirical analysis of the relationship between tax reduction policy and fiscal sustainability in Guizhou,and finally puts forward specific policy suggestions.The main conclusions are as follows: First,the current situation of local fiscal sustainability in Guizhou is not optimistic.Second,the impact of fiscal sustainability is inertial.The fiscal sustainability of the current period is significantly positively influenced by the local fiscal sustainability of the previous period.Third,the implementation of tax reduction policy has a significant negative impact on the local fiscal sustainability of Guizhou,and there is obvious regional heterogeneity.For less developed areas and regions with weak financial self-sufficiency,the negative impact of tax reduction policy on the local fiscal sustainability of Guizhou is more significant.Fourthly,the tax reduction policy can affect the local fiscal sustainability of Guizhou through the effect of higher government subsidies.Fifth,tax reduction policy has a certain time lag.In the short term,tax reduction policy has a negative impact on the local fiscal sustainability of Guizhou,but in the long term,tax reduction has a positive effect on the local fiscal sustainability of Guizhou.Finally,the paper summarizes the above and puts forward that while the tax reduction policy continues to exert its strength,in order to ensure the sustainable development of local finance in Guizhou,it is necessary to perfect and optimize the structure of tax system and cultivate and expand local tax sources.We will properly control government expenditures and improve the efficiency of the use of government funds.Scientific arrangements for local government debt,improve the financial risk management mechanism;Improve the transfer payment system and speed up the legalization of transfer payments;Change the promotion assessment mechanism,establish multiple performance assessment indicators.
Keywords/Search Tags:Tax reduction policy, Finance, Sustainability
PDF Full Text Request
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