Abstract: Taking S Province as the research object, this paper investigates the economic effects of the tax reduction and fee cut policies for micro and small businesses. The results show that although the overall implementation of tax reduction and fee cut is good, and the policy effect is increasing year by year, the economic effect is not ideal. In terms of the effect of tax reduction policy: preferential taxation has initially played a role in reducing operating costs, increasing income and stabilizing investment for micro and small businesses, but the effect of promoting employment is not obvious. By industry, the tax reduction effect of micro and small businesses in the manufacturing industry is stronger than that of the service industry. By tax categories, the scale of VAT reduction is smaller than that of corporate income tax, but the economic effect is stronger. In terms of the effect of the fee cut policy: the fee cut did not significantly improve the labor productivity and innovation investment of micro and small businesses, but played a role of stabilizing employment. The reasons are related to the fact that the benefits of enterprises enjoyed are less than expected, the policy is lack of lasting support, the tax burden of enterprises at the critical point is unfair, and the fee cut policy is not enough. This article suggests that we should improve the tax administration, perfect the design of the tax system, optimize the preferential tax standards, and increase the scope and intensity of fee cut.
