Adhere to Systematic Thinking and Plan Scientifically to Serve the Steady and Healthy Development of Economy
Lou Jiwei（ 3 ）
The Static Distribution and Dynamic Evolution of Industry Tax Burden Based on the Embedded Position of
the National Value Chain
Yao Dongmin, Meng Xiaoyu, Li Taiqi（10）
Innovation Incentive Effect of the Reform of Uncredited VAT Refund
Cai Weixian, Shen Xiaoyuan, Li Bingcai, Chai Meihua（31）
Institutional Changes of China’s Fiscal System from the Perspective of State Governance
Liu Xiaolu（49）
The Income Distribution Effect of Government Subsidies
—From the Perspective of Labor Income Share
Zhan Xinyu, Yu Qian（59）
Rural Tax and Fee Burden and Human Capital Accumulation
—An Empirical Study Based on the Rural Tax and Fee Reform
Ren Weicong, Liang Ruobing（78）
Research on Delayed Retirement Age and the Optimization of Financial Pension Expenditure
Mu Huaizhong（96）
Business Environment and High-Quality Development of Enterprises
—Mechanism Analysis Based on the Perspective of Corporate Governance
Zhou Zejiang, Lei Ling, San Ziyao（111）
The Static Distribution and Dynamic Evolution of Industry Tax Burden Based on the Embedded Position of the National Value Chain
Yao Dongmin Meng Xiaoyu Li Taiqi
Abstract: Industrial upgrading is the vertical improvement along the industrial value chain and the optimization in the division of work. Under the backdrop of industrial upgrading and from the perspective of the embedded position along the value chain, this paper studies the taxation characteristics of China’s industries. First, this paper uses an indicator called “upstreamness” to locate the horizontal distribution of various industries on the value chain, which quantitatively divides industries into upstream, midstream, and downstream ones. Next, the paper uses the industry added value to quantify the value chain vertically, constructing a national value chain that resembles a “smiling curve” . On this basis, this paper measures the distribution of China’s industry tax characteristics from the macro and micro (listed companies) aspects. The paper finds: First, China’s macro tax distribution demonstrates a pattern that is large in the midstream and small in the upstream and downstream. Due to the features of the industry and the tax system, the actual tax burden of the upstream, midstream, and downstream industries are heterogeneous. Second, there are significant differences in the tax distribution between the micro-samples of listed companies and the macro-industry. The changes in the tax system reform are more evident in the micro-samples than the macro ones. Third, our country’s tax system reform has generally adapted to the adjustment of industrial structure, but tax mismatch with industry characteristics and changes still exist. The conclusions and findings of this paper have implications for promoting tax reform in the context of industrial upgrading better.
Keywords: National Value Chain; Upstreamness; Industry Tax Burden; Industry Upgrading
Innovation Incentive Effect of the Reform of Uncredited VAT Refund
Cai Weixian Shen Xiaoyuan Li Bingcai Chai Meihua
Abstract: Innovation is the fundamental driving force to achieve high-quality development, and how to use fiscal and tax means to effectively stimulate enterprise R&D and innovation is the focus of the current government and academia. Based on the 2014-2019 micro data of listed companies, we evaluate the impact of the reform of uncredited VAT refund on enterprise R&D and innovation by using DID method. We find that reform of uncredited VAT refund significantly promotes enterprise R&D and innovation, which passes the robustness tests of parallel trend test, PSM-DID, elimination of other competitive hypotheses and replacement of dependent variables. The mechanism analysis shows that reform of uncredited VAT refund can stimulate enterprises to engage in R&D and innovation activities by alleviating financing constraints, expanding investment scale, enhancing risk bearing capacity and promoting R&D personnel employment. In addition, the innovation incentive effect of reform of uncredited VAT refund is more obvious in private enterprises, high-tech industries, growing and mature enterprises. This policy is conducive to the substantial innovation output of enterprises, and strengthening tax collection and management is conducive to magnify the implementation effect of reform of uncredited VAT refund. Our research provides a reference basis for improving reform of uncredited VAT refund, deepening modern tax reform and realizing innovation-driven high-quality development in the future.
Keywords: Uncredited VAT Refund; Innovation; R&D Spending; Difference-in-Difference
Institutional Changes of China’s Fiscal System from the Perspective of State Governance
Liu Xiaolu
Abstract: Fiscal theory based on state-governance takes state governance and public finance as a whole, therefore institutional changes of China’s fiscal system should be understood in the circumstance of phased transfers of state governance. This paper reviews the synchronous evolution of state governance and public finance in the history of developed countries, and theoretically divides the development of state governance into three stages based on the three kind of relations between the will of state and the will of people. Thus the main features of China’s three state governance periods can be described as exploration period of Socialist construction, pioneering period of Socialism with Chinese Characteristics and new era of socialism with Chinese characteristics. In each period, the content and form of fiscal systems were different, but they all served the needs of state governance in that specific stage, which can be observed by looking at the shifting importance of fiscal roles from economic governance to social governance to governmental governance. In this paper, the concept of State Governance is forged into an analytical instrument to study specific fiscal problems.
Keywords: State Governance; Fiscal System; Basic Theory of Public Finance; Fiscal History of China
The Income Distribution Effect of Government Subsidies
—From the Perspective of Labor Income Share
Zhan Xinyu Yu Qian
Abstract: Increasing the share of labor income to optimize the income distribution pattern is an important part of realizing the strategic goal of common prosperity. This paper constructs an extended CES production function model including government subsidies, and uses fixed effect model and dynamic panel threshold model to examine the inverted U-type relationship of government subsidies and the share of labor income based on the data of listed companies. The results show that government subsidies can significantly increase the share of labor income, but there is a threshold. When the government subsidy is below the threshold value, the government subsidy increases the share of favorable labor income, but when the government subsidy is above the threshold value, the situation is quite opposite. The results of mechanism analysis show that the increase of operating profit and the improvement of financing constraints caused by government subsidies are important ways to increase the share of labor income. With the increase of the scale of government subsidies, the weakening of the promotion effect, and the rising of enterprise rent-seeking costs, are the important reasons for the inverted U-shaped impact of government subsidies on the share of labor income. The theoretical model and empirical analysis constructed in this paper not only explain the impact of the government subsidy on the labor income share from a micro perspective, and provide the model explanation and empirical evidence for the decision mechanism of the labor income share, but also provide an inspiration for the modern fiscal and tax system building and deepening and the reform of the income distribution system.
Keywords: Government Subsidies; Factor Input Structure; Share of Labor Income; Income Distribution
Rural Tax and Fee Burden and Human Capital Accumulation
—An Empirical Study Based on the Rural Tax and Fee Reform
Ren Weicong Liang Ruobing
Abstract: The level of human capital in rural areas is an important factor supporting rural development, and tax burden has a profound impact on rural residents’ educational investment. So this paper establishes a theoretical model between the taxes payable by farmers and education investment, and deduces their negative relationship. The study found that families with lighter burdens after the tax and fee reform have a significantly higher probability of their children enrolling in high school and a significant increase in the number of years of education. This conclusion remains unchanged after a series of robustness tests and instrumental variable regression to alleviate endogeneity. Mechanism analysis shows that the tax and fee reform can improve the human capital by reducing the tax and fee burden of farmers and encouraging them to increase education expenditure. In order to further narrow the urban-rural education gap and achieve the goal of common prosperity, it is urgent to increase fiscal and taxation support for rural household education investment.
Keywords: Rural Tax and Fee Burden; Rural Tax and Fee Reform; Human Capital Accumulation
Research on Delayed Retirement Age
and the Optimization of Financial Pension Expenditure
Mu Huaizhong
Abstract: With the deepening of population aging, financial pension expenditures with a bottom-line nature will gradually increase. Based on the linkage mechanism between delayed retirement age and financial pension, this paper constructs an optimization measurement model of financial pension expenditure, studies the linkage law between delayed retirement age and financial pension optimization, and finds that: Delay the retirement age to 65 years old, the optimization coefficient of pension insurance payment will reach 1.15, the optimization coefficient of pension insurance expenditure will reach 2.81, the optimization coefficient of financial pension expenditure will reach 3.96. The optimization of fiscal pension income redistribution is 1.42% of GDP in 2030, and 1.98% of GDP in 2035. The research results have application value for optimizing the redistribution level of fiscal support income in the “14th Five-Year Plan” and the long-term goal of 2035.
Keywords: Delay the Retirement Age; Pension Supply and Demand; Financial Pension Level
Business Environment and High-Quality Development of Enterprises
—Mechanism Analysis Based on the Perspective of Corporate Governance
Zhou Zejiang Lei Ling San Ziyao
Abstract: This paper uses weighted synthesis method and entropy method to calculate business environment index of provincial-level, and selects A-share listed companies in China’s capital market from 2011 to 2019 as samples to investigate how business environment affects high-quality development of enterprises and its corresponding context characteristics and influence mechanism systematically. The research shows that: (1) Optimizing business environment can significantly improve enterprise development quality; (2)The promotion effect of optimizing business environment on high-quality development of enterprises is significantly enhanced in private enterprises than in SOEs. Compared with high-tech enterprises, the above promotion effect is more obvious in non-high-tech enterprises; (3) Optimizing business environment can promote high-quality development of enterprises by reducing non-pecuniary compensation, restraining major shareholders’ tunneling and improving audit quality. The research conclusions enriched the literature on the influencing factors of high-quality development of enterprises, clarified the mechanism of how business environment promotes high-quality development of enterprises, and also provided micro-level empirical evidence for government departments to improve business environment.
Keywords: Business Environment; High-Quality Development of Enterprises; Corporate Governance