Growth Needs Stock Market Boom And Tax Cuts.

The impact of tax cuts on all enterprises is parallel. In the economic downturn, tax cuts increase profits after tax, and help enterprises to preserve their strength.

More importantly, when the economy is down, we should shoulder the difficulties together.

As the spokesman of the central bank said, China's financial system is running well and there will be no financial crisis similar to that in the US and Europe.

For example, there will be no subprime mortgage crisis. Although there are cases of loan discontinuation in some areas, the overall bad debt rate of residential mortgage loans is very low, which is one of the best assets of Chinese commercial banks. China's economic development stage does not need or is not enough to support the large-scale financial derivatives market in the United States. China's commercial banks have always been subject to more stringent regulation, and investment banking and hedge funds have hardly budged.

More importantly, China has a high level of savings, and the habit of over consumption has not yet formed.

China's economic growth rate is slowing down. Although the rise of CPI and PPI is relatively obvious, if the disturbance factors such as rising oil prices, rising grain prices, natural disasters and so on, the inflation pressure caused by the normal demand pull is very slight.

CPI's monthly decline shows that the release of inflationary pressure is coming to an end.

If it is not properly dealt with, the slowdown in growth due to insufficient aggregate demand will gradually become apparent.

Even economic deflation in the future is not a worry.

The fall is certainly the result of many factors, but investors' worries about the macroeconomic outlook are the most fundamental.

Since the beginning of this year, the export growth rate has not seen a sharp decline for many years, causing a large number of enterprises, such as Guangdong and Zhejiang, to go bankrupt as the pole of China's economic growth, and there are many large private enterprises.

As a good representative of the listed companies, this year's profit outlook is also far less than last year, and as long as investors expect the corporate earnings outlook to deteriorate, the fall in share price is inevitable.

As a result, the central bank lowered the "two rate" and the effect of the Ministry of finance's exemption from personal interest tax on deposit interest, which was only short-lived for the stock market. The rise of the US and European stock markets on Monday did not play a stimulating role in the A share market.

This shows that there is only nominal correlation between the Shanghai and Shenzhen stock markets and the peripheral stock market. Our problem is the lack of confidence in our real economy.

Since the beginning of the new century, the growth rate of China's fiscal revenue has been far higher than the growth rate of GDP. The root cause of this abnormal situation lies in the defects of the tax system design, both the turnover tax and income tax, and the tax burden is too high.

At the same time, the structure of fiscal expenditure is unreasonable, administrative expenses and other expenses increase unusually, while social security expenditure is seriously insufficient.

On the other hand, the residents' income must bear the social security expenditure which should be borne by the public finance, and the consumption must be cautious.