At present, the rapid decline in the growth rate of investment in machinery and equipment threatens the long-term growth prospects of China's economy, which may indicate that enterprises have insufficient confidence in technological updates, transformation and upgrading. Increasing the value-added tax deduction ratio for investment in machinery and equipment will stimulate the endogenous motivation of enterprise investment, and it is necessary to innovate proactive fiscal policy ideas to reduce the tax burden and stimulate the endogenous motivation of investment in the real economy, especially to increase the intensity of enterprise investment in machinery and equipment. The advantages of the new tax reduction approach are mainly reflected in two aspects: firstly, it will give full play to the leverage of the proactive fiscal policy, stimulate the endogenous motivation of corporate investment, and be compatible with expanding domestic demand incentives; secondly, it will combine reducing the tax burden of enterprises with improving the quality and efficiency of economic growth. Of course, the new ideas may also have the risk of excessive tax cuts, which will lead to unbearable financial risks.
