The tax cuts to create wealth of activity means a kind of incentive, also is the hidden abound a means of the people, the folk and academics have been the voice of the tax cuts.

The relevant departments but that, China's macro tax burden level is not high, even lower than many developing countries, the subtext is not necessary to tax cuts.

China's macro tax burden is it is above or below the international level, itself also deserves further study. Perhaps, from tax revenue share of GDP or government expenditure in GDP these indicators look, China has no foreign high, particularly no European country high. But think of the foreign fairly sound social security system, especially in some European countries, the education, medical treatment, people aged and other social welfare spending accounts for the big head of government expenditure, or all of the national BaoXiaLai, and it cannot be simply say China's tax burden is still low in the world of this sentence.

Dynamic to watch, government tax and finance income considerably more than economic growth, in the national income the 'cake' cut in a piece of NBA hats more and more big, is also the fact that does not dispute. The previous three quarters of this year, the national tax revenue than last year the corresponding period grows 27.4%, financial income increased by 29.5%, and only 9.4% over the same period, the GDP growth. The government take much more, of enterprise and residents in the cake in the natural small cut. Since the 1994 tax since the reform, the government's financial income share of GDP by 10% at the beginning of has increased from 20% to or so, whole doubled.

Problem is that our tax mainly from tax, especially the value added tax, is to create the wealth management production activities tax, if the tax increase too fast, which encouraged the growth of production, go against the production investment incentive at risk. Instead, from economic entity of speculative behavior, such as real estate and stock futures business support but less than driving factory make many many tax, made a lot of factory owners inadvertently a factory, intended however investment real estate, the result China has not rich, wealth of foam were the more the greater the blow.

Tax cuts is not only necessary, but is unfavorable to drag. Now inflation pressure still not small, in the short term money to have big, become loose, many enterprises have guts, they took to the 'usury' non-return road (folk and the prevalence of usury and active, and demonstrate that the surplus capital market to economic entity is not interested, issuing loans also high need not pay tax). On one hand, inflation pressure not away, all kinds of Discount sunglasses production costs continue to rise; On the other hand, the tax burden also increased in (the government at all levels to complete the task will be financial income, under the layers of pyramid can with all sorts of names increase taxes), enterprise production and investment will blow against nature. In the long run, the entity economy seriously injured, the national economy will also get 'empty'.

Tax cuts as the government is timely, can not change in monetary policy under the premise of basic direction, to economic warming and fire. The tax cuts in the short term may make financial income has decreased, but in the long run, it will increase the fiscal revenue, in economics' pull eph curve 'is this truth.

Next year is the government running last year of complete, nearly ten years accumulative total, national strength has greatly ascend, financial has improved significantly, activate the endogenous economic growth momentum is around the corner, the tax cuts is the best opportunity, in order to reflect the macro policy timely fine-tuning.
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