Fiscal Pressure,Tax Effort And Enterprise Tax Stickiness

The level of corporate tax burden is an important indicator related to the good operation of social economy and enterprises.The World Tax Report in previous years shows that China’s total tax and tax rate are relatively high.Therefore,in recent years,the country has been implementing a series of tax and fee reduction policies,in order to reduce the tax burden of enterprises,rescue enterprises at the same time to stimulate the vitality of technological innovation of enterprises and stabilize economic confidence.However,with the continuous introduction and implementation of tax and fee reduction policies,the degree to which enterprises’ actual tax burden pressure is alleviated has become the focus of academic attention.The tax burden stickiness proposed based on the cost(expense)stickiness provides a new idea for measuring the level of corporate tax burden.The tax burden stickiness means that the increase of corporate tax burden with the increase of profits is greater than the decrease of corporate tax burden with the same degree of decline of profits.The tax burden stickiness also becomes a new form of expression to interpret the pain of corporate tax burden.Therefore,this paper takes tax burden stickiness as the main research object to carry out relevant research on corporate tax burden.Starting from the theoretical level,this paper comprehensively demonstrates the existence of tax stickiness of enterprises and the influencing factors of tax stickiness.Based on the belief that enterprises have tax stickiness,this paper analyzes the internal and external factors that affect the tax stickiness of enterprises theoretically,and further analyzes the influence mechanism of financial pressure and tax effort on the tax stickiness of enterprises by combining with the current situation of local government’s fiscal revenue and expenditure under fiscal decentralization.From the perspective of the government’s financial pressure,after fiscal decentralization,the decentralization of the power of revenue and administration has aggravated the financial pressure of local governments to some extent.In recent years,the impact of various unstable factors on the social economy has further aggravated the degree of financial imbalance of local governments.In order to ensure the necessary financial expenditure,local governments have to increase the intensity of tax collection.Thus increasing the tax burden of enterprises stickiness;From the perspective of tax collection efforts,in order to ensure fiscal expenditure,the government adopts tax efforts such as improving the efficiency of collection and administration and strengthening the intensity of inspection,which may aggravate the "hidden tax" of enterprises.Under the background of tax reduction and fee reduction,the nominal tax burden of enterprises decreases but the actual tax burden remains at a high level,which leads to the tax burden of enterprises being sticky.Therefore,it is particularly necessary for this paper to explore the impact of financial pressure and tax effort on the stickiness of corporate tax burden.Based on the above theoretical analysis,this paper makes research assumptions based on the current situation of fiscal pressure and tax revenue efforts of 31 provincial administrative units during the 15-year period from 2007 to 2021.Taking the change level of tax burden of listed companies in China’s A-share market from 2007 to 2021 as the research object,this paper empirically tests the existence of corporate tax burden stickiness and the relationship between fiscal pressure and tax effort on tax burden stickiness,and carries out endogeneity test,robustness test and heterogeneity analysis,and draws the following conclusions: First of all,on the whole,Chinese listed companies generally exist tax viscosity.Secondly,large fiscal pressure can aggravate the stickiness of corporate tax burden to a certain extent,and tax efforts also have a strengthening effect on the stickiness of corporate tax burden.At the same time,it is found that tax effort can act on tax burden stickiness as a means of fiscal pressure,that is,tax effort has partial mediating effect between fiscal pressure and tax burden stickiness.Finally,according to the research conclusions,the paper puts forward specific opinions,which has certain reference significance for the government to take measures to reduce the tax burden of enterprises and reduce the pain of tax burden of enterprises.