Reducing Tax As A Supply Side Reform Has Narrowed The Supply Side Reform.

Since the introduction of the structural reform of the supply side, there has been a certain degree of cognitive bias and misunderstanding in the society. One view is that the most powerful reform measures at present are universal tax cuts and the use of tax cuts to activate the economy.

Experts point out that reducing tax as the main means of supply side reform has virtually reduced the big pattern of supply side reform, and at the same time, it has not fundamentally realized that "cost reduction" is a comprehensive systematic project.

In order to achieve the purpose of upgrading quality and efficiency, we need to build a combination of "cost reduction".

The essence of supply side structural reform is deepening reform.

Whether it is to resolve excess capacity, dispose of "zombie enterprises", reduce enterprise costs, or resolve real estate inventory, make up for short board development and guard against financial risks, we must rely on comprehensive deepening reform.

Zhang Peng, a researcher at the Chinese Academy of fiscal Sciences, pointed out that the structural reform of the supply side is a major strategic plan for building a moderately prosperous society in all respects and a major reform measure for implementing the "five development ideas" in 13th Five-Year.

Therefore, the core goal of the structural reform of the supply side is unified with the strategic objectives of the 13th Five-Year development plan.

Development and its drive and support for economic development are the core requirements of supply side structural reform.

On the whole, the supply side reform includes 5 aspects: capacity, inventory, leverage, cost reduction and compensation.

Obviously, simply emphasizing the idea of reducing taxes and reducing costs is narrowing the supply side reform pattern, which includes multiple fields, levels and links.

In practice, tax reduction is only one of the many means.

Li Zuojun, deputy director of the Institute of resources and environmental policy of the State Council Development Research Center, believes that the right direction to push forward the supply side reform should be "eight minus eight growth": reducing government regulation, increasing market vitality, reducing administrative monopoly, increasing fair competition, reducing tax burden and increasing enterprise efficiency, reducing government agencies, increasing social organizations, reducing excessive money and increasing direct financing, reducing government investment and increasing social investment, reducing resource consumption and increasing intellectual capital, reducing short-term policies and increasing long-term rule of law.

Of course, at present.

Difficulties in development and reduction of tax burden will undoubtedly help enterprises.

Short term implementation of tax reduction policy can increase enterprise income, enterprises have more capital to invest in production and expand production scale.

At the same time, the tax burden of production links can also be reduced, and the share of enterprises and residents in the distribution of national income should be increased correspondingly, so as to enhance the residents' consumption ability.

However, in the reform of supply side, tax reduction is not a panacea.

According to the Western School of supply, tax cuts can reduce prices and stimulate demand, so that the supply side can live up to break the stagflation caused by many products, high prices and insufficient consumption capacity.

But China's current situation is not the same.

According to expert analysis, China's supply side problem is more complex. Many people do not have no money to spend, but domestic supply can not meet the needs of consumption upgrading.

It is reported that the current high and middle income groups account for a large proportion of overseas shopping, while the slow upgrading of supply structure and inadequate innovation capacity have inhibited the increasing consumption demand of residents.

The solution to this problem is obviously limited by tax cuts only.

In the supply side reform,

It's just one of the measures to reduce costs.

The central economic work conference is a comprehensive and multilevel arrangement for reducing the cost of enterprises. It is a set of "combined boxing", which changes the thinking mode of reducing taxes and reducing taxes.

In Zhang Peng's view, cost reduction "combined boxing" includes: reducing institutional paction costs; lowering the burden of tax burden on enterprises; further improving the effectiveness of the "camp to increase" reform; reducing the financial cost of enterprises, creating a policy environment for normalizing interest rates; lowering electricity prices, pushing forward the marketization of electricity prices, reducing logistics costs, and promoting the reform of the circulation system.

Among them, reducing institutional paction costs is very important.

The core of the supply side reform is to reduce the institutional paction costs of enterprises, including paction costs, taxes and fees, financing costs, social security costs and so on.

This is conducive to enhancing enterprise's innovation ability, improving the quality and efficiency of supply, improving the supply structure, and ultimately improving total factor productivity.

Xu Lin, director of the national development and Reform Commission's development planning department, said.

In a way, reducing institutional paction costs is more important than tax cuts for businesses.

Financial expert Lining [-0.73%] analysis said that for enterprises, most of the cost of taxation is based on the sales and profits of enterprises, so in the case of loss of business and bad sales of products, some turnover tax and income tax will not be paid, and naturally there will be no cost.

On the contrary, institutional paction costs, logistics costs, financial costs and so on are decoupled from corporate profits.