Recently, General Secretary Xi Jinping made it clear at a private enterprise symposium that it is necessary to reduce the tax burden of enterprises, increase tax reductions, and substantially reduce the burden on enterprises. The general direction of tax cuts has been set, and how to cut taxes reasonably is the current focus issue. There are trade-offs in tax cuts, and economic logic is needed. At present, the following principles need to be paid attention to.Principle one, focus on the balance between increasing investment in the short term to stabilize growth and reducing burdens in the long term to stimulate vitality.Principle two, focus on reducing corporate tax burdens.Principle three, start with taxes and fees with poor compliance.Following the three principles listed above, the author makes a few suggestions for further tax reduction and fee reduction in the next step.First, lowering the average nominal rate of value-added tax is not suggested.Second, greater efforts should be made to reduce the social insurance premium rate, and a certain percentage of value-added tax may be considered for special use in social insurance.Third, increase the input tax deduction ratio of the value-added tax for investment in machinery and equipment to stimulate the endogenous motivation of enterprises to invest.Fourth, consider reducing the corporate income tax rate appropriately.
