Abstract The Central Economic Work Conference proposed to continue to implement a proactive fiscal policy and a prudent monetary policy, and give full play to the role of countercyclical adjustment and structural adjustment. To implement a proactive fiscal policy, we must improve the structural tax reduction policy in conjunction with the tax reform. Governments at all levels must implement savings...
The Central Economic Work Conference proposed to continue to implement a proactive fiscal policy and a prudent monetary policy, and give full play to the role of countercyclical adjustment and structural adjustment. To implement a proactive fiscal policy, we must improve the structural tax reduction policy in conjunction with the tax reform. Governments at all levels must implement strict economy, strictly control general expenditures, and use the money in the cutting edge. The Central Economic Work Conference proposed to improve the structural tax reduction policy in combination with the tax reform, which can be said to reflect the regulatory intention of the tax system reform as the main content of the active fiscal policy, and the direction of regulation is to further carry out structural tax cuts. Specific to the reforms that have already been carried out, it is to push the reform of “business tax to VATâ€. Then, why did the new central leadership collective attach so much importance to the tax reform, and put the importance of tax reform to such a high level, and clarify the contents of the reform?
First, promoting a new round of fiscal and tax reform is the key reform with the lowest cost, the least risk, the largest consensus, the most mature conditions, and the most promising results. At present, there is a high voice in the reform of the fiscal and taxation system in the society. There is also a great consensus on promoting the promotion of this reform to the economic transformation. Therefore, the resistance to reform is relatively small.
Second, the new central leadership revealed to the society the important policy signals for continuing to push forward reforms. The reform of the fiscal and taxation system will help to drive other reforms. Because one of the important contents of the reform of the fiscal and taxation system is the "budgetary democracy" and "legal rights". The so-called budgetary democracy and taxation authority are the amount of money that the government has to collect and how much it will cost in a year. It is necessary to accept the substantive approval and approval of the people (or representatives of the people's congress elections) through budget preparation. Tax revenue is an important part of the budget system. The government taxation must be supervised and restricted by the law and the people. The government needs the consent of the people for each taxation. It can be seen that the reform of the fiscal and taxation system is by no means a matter of simple macroeconomic regulation and control policy choice, but a real political reform of the rule of law.
Third, the reform of the fiscal and taxation system is also related to the division of central and local financial powers and is an important part of the reform of the income distribution system. For example, if taxation implements tax reduction reform, then enterprises will get more income, they can give workers more wages, increase workers' labor income, and income distribution will be redistributed under the fiscal and taxation system. In addition, after the “reform of the campâ€, the business tax as a local exclusive tax is incorporated into the central local shared tax, and local income and authority need to be redefined and divided.
Finally, it reflects the pragmatic move of the new central leadership collective to develop the economy. The 18th National Congress of the Communist Party of China pointed out that promoting the strategic adjustment of the economic structure is the main direction of transforming the economic development mode. It is necessary to firmly grasp the solid foundation for the development of the real economy and implement policy measures that are more conducive to the development of the real economy. An important aspect of the strategic adjustment of the economic structure is the development of the tertiary industry, especially the modern service industry that can absorb more jobs. The change of business tax to value-added tax and the reduction of corporate tax burden are specific policy measures to support the modern service industry and an important measure to support the real economy. Therefore, the first economic leadership meeting of the new central leadership group regards structural tax reduction as the main content of the active fiscal policy, and reveals to the market the positive signal of further structural transformation of the economic development of the real economy, and it is also a pragmatic move of reform.
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