(1) The smooth completion of the supply-side structural reform is inseparable from the policy support of tax reduction and fee reduction. The goal of supply-side structural reform in China is to improve supply efficiency, optimize economic structure, and then promote sustained economic growth. Products have a demand side, and the supply side is mainly enterprises. Therefore, the improvement of enterprise's economic profit is conducive to improving the quality and efficiency of supply, and tax reduction is an effective way to stimulate the development of enterprise production.

The "tax reduction and fee reduction policy" reduces the burden on enterprises, improves the quality of government fiscal and taxation services, improves the business environment, promotes the improvement of industrial structure, and is conducive to the completion of supply-side reform tasks and stable economic growth.

(2) The concept of economic development has changed, paying more attention to economic quality. After more than 40 years of economic development, the economic level has improved significantly, and the main social contradictions have also changed. So our people have a higher pursuit of life. The government's concept of economic development is not to blindly pursue economic speed, but to pay attention to environmental protection, actively guide technological innovation of enterprises and improve the quality of economic growth. This means that our government will pay attention to both high-quality economic growth and harmony with nature in the future. The so-called "Lucid waters and lush mountains are invaluable assets".

Now, China's demand for enterprises is no longer to expand production on a large scale and improve profits, but to encourage enterprises to adjust their production structure, reduce energy consumption and develop in a green, efficient and innovative direction. Therefore, China has implemented a new tax policy to stimulate the transformation and upgrading of enterprises and promote high-quality economic development.

(3) Overcome the economic impact of COVID-19 epidemic and help enterprises to resume their work and production. At the beginning of 2020, affected by the COVID-19 epidemic in China, the production activities of most enterprises in the country were restrained, and catering, tourism, hotel accommodation and transportation were also restricted, which seriously impacted the domestic economy, severely damaged the service industry, and small and micro enterprises were on the verge of bankruptcy. At this time, the government is needed to help, and tax incentives are a good coping tool.

Therefore, during the epidemic, helping enterprises to resume work and production is the top priority. Therefore, China has issued a series of targeted tax reduction policies to help enterprises mitigate the impact of the epidemic. However, the preferential tax policies given during the epidemic period are short-lived. If enterprises want to continue to resume production and improve operating profits, they need the government to further formulate and implement a proactive fiscal policy. Especially now, COVID-19 has not been eliminated by the world, and the import and export of enterprises are still restricted. Therefore, in order to promote the development of enterprises, we should continue to promote the policy of tax reduction and fee reduction.

(2) International reasons

(1) The global economy is growing slowly, and a proactive fiscal policy is needed to stimulate economic recovery.

In recent years, the global economic growth has been relatively slow. In 2020, affected by the COVID-19 epidemic, the global economy declined by 3.5%. Among the major economies, only China has achieved positive economic growth of 2.3%. On March 9th, 20021,the OECD predicted that the global economic growth rate would increase to 5.6% this year, and the economic recovery could not be separated from the active financial support of all countries. Moreover, China's economic operation is accompanied by multiple risks, so it is necessary to strengthen risk prevention and control with active fiscal policy to support China's sustained and stable economic operation.

Therefore, since 2008, China's tax reduction policy has been continuously updated and improved, and the intensity of tax reduction is getting bigger and bigger, which directly stimulates social and economic vitality. Although the global economy is growing slowly, it is also under the condition of gradual economic recovery. Private investment in China began to recover after 20 16 years. Under the condition of the continuous release of tax reduction and fee reduction bonus, the macro tax burden of the whole society has decreased, and the production environment of Chinese enterprises has continued to improve.

(2) The tax reduction policies of various countries in the world have been introduced one after another, which has triggered international tax competition.

From a global perspective, the large-scale tax reduction bill implemented by the United States aims to attract investment back, increase employment and stimulate economic growth. Some European countries, such as Britain, France and Germany, are also planning or implementing tax cuts. Other countries are also joining the global wave of tax cuts. Britain plans to reduce the corporate income tax rate to below 15%, France plans to reduce the specific corporate income tax rate by 5.3 percentage points, and Germany plans to reduce the personal income tax.

The tax reduction policies of these countries have played an important role, reducing the burden on domestic enterprises, improving international competitiveness and inspiring investors' confidence. Under the global tax reduction atmosphere, China has made a tax reduction policy suitable for the national conditions. Reducing taxes and fees can reduce the burden on enterprises and individuals, increase the profits of enterprises and improve disposable personal income. So as to expand the production scale of enterprises, increase jobs, enhance personal consumption capacity, attract foreign investment, increase fiscal revenue, and stimulate the healthy economic development of China.

(3) The global economic trend is blocked, and Sino-US trade disputes continue.

Since the reform and opening up, China has actively participated in the wave of globalization and deeply participated in international economic exchanges, so the economic level of China has greatly improved in the past 40 years. However, globalization is a double-edged sword with both opportunities and challenges. Every country has different national conditions and benefits from globalization. Moreover, in recent years, the global economic growth has been slow, and some countries have been affected by factors such as unemployment and the widening gap between the rich and the poor, which has intensified the anti-globalization trend.

In particular, in 2020, the global COVID-19 epidemic broke out, which had a serious impact on the economies of various countries, and trade protectionism took advantage of the chaos. Some countries not only refuse to promote international cooperation, but also mobilize international organizations to create trade frictions and engage in trade protectionism, further strengthening the anti-globalization trend. In the face of the anti-globalization trend, China has been influenced by the trade disputes provoked by the United States.

In 20 18, the United States imposed tariffs on goods imported from China. In response, China also imposed tariffs on American products. This trade war is in a state of seesaw, which has adversely affected the economic development of both countries. Therefore, China should first stabilize its domestic economy and formulate targeted economic policies to cope with external economic pressures. Therefore, we should continue to promote the policy of tax reduction and fee reduction, accelerate the reform of fiscal and taxation system, promote the optimization of China's industrial structure, and stabilize the domestic economy in order to cope with the negative impact of trade disputes and anti-globalization.

II. Contents of China's tax reduction and fee reduction policy

(A) the first stage of structural tax cuts

In 2008, in order to alleviate the economic impact on China, the "structural tax reduction" was proposed for the first time. The so-called structural, that is, the scope of tax reduction is focused on, which is the tax burden adjustment for specific industries and specific enterprises. At this time, the tax cuts are mainly:

First, expand investment. Fully realize the merger of income tax and value-added tax of domestic and foreign-funded enterprises from "production type" to "consumption type" to encourage enterprises to increase technological investment and actively innovate; Give some care to small-scale taxpayers, appropriately reduce their incremental rate of value-added tax, and reduce the operating burden of small enterprises; Levy stamp duty unilaterally, reduce the stamp duty rate and improve the efficiency of the capital market.

Second, adjust the economic structure. We will give preferential income tax policies to western development enterprises, preferential tax policies to integrated circuits, software and other related industries, and increase the export tax rebate rate of high-tech products. I hope this way can promote the upgrading of China's industrial structure and change the export mode. Third, improve people's livelihood. Optimize the tax deduction standard, expand the application scope of lower tax rate, and implement preferential tax policies for laid-off and unemployed people and difficult groups to re-employment, so as to improve their income level.

(B) the second phase of the camp reform and tax reduction

On 20 12 1 month 1 day, the pilot work of camp reform in China was officially launched. The first place is Shanghai, and the pilot industries are transportation and some modern service industries. With the advancement of the pilot work, the reform of the camp has gradually expanded to other regions. Until May 20 16, China fully implemented the reform of the camp, and the scope of value-added tax collection expanded to the fields of construction, finance and life service.

(C) the third stage of a larger scale of inclusive tax cuts

Since 20 18, China has introduced a series of measures to reduce taxes and fees, the most important of which is to deepen the reform of value-added tax, including reducing the rate of value-added tax, adjusting the standards of small-scale taxpayers, and returning the end-of-term tax credits of some industries at one time, so as to improve taxpayers' sense of tax reduction with real feelings.

In 20 19, the reform of value-added tax was further intensified. Reduce the tax rate and deduction rate of some industries again, adjust the export tax rebate rate, change the real estate deduction method and additional deduction of some industries, and reduce the tax burden of taxpayers. The taxable income of small and micro enterprises enjoying preferential corporate income tax will be further increased to 1 10,000 yuan, and the pre-tax deduction of enterprise R&D expenses will be strengthened to improve the scientific and technological investment and innovation enthusiasm of enterprises.

At the same time, the major changes in individual taxes reflect the inclusiveness of this reform, raising the deduction standard for basic expenses of wages and salaries, optimizing the tax rate structure, and increasing special additional deductions. In addition, this tax reform is the first step towards comprehensive collection, releasing a stronger inclusive signal.