What Is the Relationship Between Fiscal Policy and Taxes?

Fiscal policy is the basic criterion formulated by the state to guide fiscal distribution activities and handle various fiscal distribution relationships. It is a reflection of the objective fiscal distribution relationship on the will of the state. In a modern market economy, fiscal policy is also a tool for the state to intervene in the economy and achieve macroeconomic goals.

[cái zhèng zhèng cè]

Fiscal policy refers to the promotion of employment levels, reducing economic fluctuations, and preventing

Fiscal policy is constantly evolving with changes in the mode of production of society.

There are many practical problems in the implementation of fiscal policies, and these problems will affect policy effects.

First of all, any kind of fiscal policy has its positive effects, which means that a policy must have certain side effects when it achieves its ultimate goal. For example, while expanding fiscal policy will stimulate the economy, it will also lead to increased inflation. The price of achieving full employment is inflation; while fiscal policy stimulates aggregate demand, it will also increase interest rates and inhibit investment. This is the fiscal policy. Crowding effect, which reduces the role of fiscal policy in stimulating aggregate demand.

Secondly, macroeconomic policies only analyze policy issues from an economic perspective. In fact, the effects of policies are also affected by many non-economic factors, especially political factors. International political struggles and domestic political issues all affect policy effects. Therefore, it is not enough to analyze the effects of policies from an economic perspective. In fact, decision makers must make a comprehensive analysis of various economic and non-economic factors when deciding on policies, otherwise it will be difficult to achieve the expected policy effects.

Finally, in terms of economic factors, macroeconomics is not complete. In this way, it is unavoidable to make wrong decisions, which will affect the effect of fiscal policy. ^[4]

In order to achieve certain economic goals, it is often impossible to use only one policy tool. In order to achieve the optimal policy effect, various fiscal policy tools must be used in conjunction. How to coordinate and coordinate policies is a crucial issue in deciding policies. This coordination and cooperation includes the coordinated use of various fiscal policy tools, as well as the coordination of domestic and foreign policies. Only with the proper coordination and coordination of policies can we obtain the optimal policy effects. Of course, there are certain rules to follow in this coordination and cooperation, but more often, we have to adapt to the specific situation.

These problems in the implementation of fiscal policy are precisely the difficulties in applying policies. How to use various policies to achieve the ideal fiscal policy is a profound knowledge that is far from being described by economic theory. ^[4]

The fiscal policies of modern countries are constantly adjusted with the different needs of political and economic development in different periods. However, this adjustment has remained relatively stable for a certain period of time. The main adjustment methods are:

Dynamic adjustment. That is, according to social and economic development and changes, corresponding fiscal policies are stipulated.

Overall adjustment. Organize all kinds

Question: 2012 coincided with the "Twelfth Five-Year Plan" period to the Central Bureau and encountered the challenge of slowing economic growth. What role did active fiscal policies play in stabilizing growth? ^[5]

A: In response to the new situation and new problems in economic operation, the financial department has placed stable growth in a more important position in accordance with the general requirements for progress in stability, strengthened and improved macro-control, and continued to implement active fiscal policies while continuously increasing The major pre-adjustment and fine-tuning efforts have further enhanced the forward-looking, targeted and flexible policies, and promoted the steady and rapid economic development and the improvement of people's livelihood. ^[5]

Regarding specific control measures, on the one hand, we will implement and improve structural tax reduction policies, strive to expand consumer demand, and take various measures to promote the steady growth of investment and foreign trade. On the other hand, we will actively adjust the structure of fiscal expenditures, further increase investment in education, medical care, social security and employment, and strive to protect and improve people's livelihood. ^[5]

Question: Since 2012, what structural tax reduction policies have been introduced in China to cope with the downward pressure on the economy and maintain price stability?

Answer: Since 2012, in the face of complex and severe domestic and foreign economic environments, in order to maintain stable and rapid economic development and basically stable price levels, while continuing to implement the existing tax reduction policies, the state has further improved its structural characteristics in accordance with the actual economic operations. Tax reduction policies have introduced some new tax reduction policies.

It is particularly noteworthy that the implementation of the pilot reform of business reform in 2012 is the emphasis of deepening the reform of the fiscal and taxation system, the key point of structural tax reduction to promote stable growth and structural adjustment, and is a major reform measure. It is also an effective development measure. So far, the Shanghai pilot has achieved remarkable results, which has effectively promoted the upgrading of the industrial structure and accelerated the development of the service industry and SMEs. The scope of the pilot has also been steadily expanded. From August 1 to the end of the year, it will be expanded to 11 provinces including Beijing (Municipalities, cities with separate plans). ^[5]

In addition, 253 administrative fee items were cancelled, and 22 fees were temporarily waived for small and micro enterprises, which is expected to reduce the burden on enterprises by 15 billion yuan each year.

Question: The key to stable growth is to solve the problem of insufficient demand. What measures have been taken to expand consumer demand?

A: The main reason is to continue to increase the scale of fiscal subsidies and implement a series of fiscal and tax policies to guide and expand consumer demand.

On the one hand, implement the policy of going to the countryside for home appliances and motorcycles. From January to September, the country (excluding Shandong, Henan, and Sichuan) sold 57.308 million home appliances to the countryside, with sales of 15.386 billion yuan, up 12.1% and 21.6% year-on-year respectively.

On the other hand, vigorously implement the "energy-saving appliances benefit the people project". In addition, we will vigorously promote the establishment of a commercial circulation system, support some provinces and cities to launch comprehensive agricultural product circulation pilots, etc., and create a good consumption environment for urban and rural residents.

Q: Steady growth is also inseparable from stable investment needs. What are the measures in this regard?

A: On the one hand, a number of major projects will be launched as soon as possible in accordance with the "Twelfth Five-Year Plan" to accelerate the progress of the central infrastructure investment budget. As of the end of September, the budget for central infrastructure investment had reached 399.5 billion yuan, accounting for 97% of the annual budget indicator, an increase of 8 percentage points over the same period of the previous year. Funds for key projects under construction and continuing construction and major national projects started have been better Protection.

On the other hand, cooperate with relevant departments to issue detailed implementation rules of the New 36 related fields, implement preferential fiscal and tax policies to promote private investment, and encourage private investment. At the same time, efforts have been made to optimize the investment structure, strictly control new projects and prevent duplicate construction. ^[5]

Q: Since 2012, the foreign trade situation is not optimistic. What measures have been taken to stabilize foreign trade exports?

Answer: In order to promote the stable growth of foreign trade, we will focus on implementing fiscal and tax policies that support the stable development of foreign trade. Accelerate the progress of export tax refunds to ensure accurate and timely tax refunds.

At the same time, we will clean up and standardize administrative and administrative charges and operating service charges in the import and export link, cancel unreasonable charging items, reduce charging links, and lower charging standards.

In addition, we will increase support for export credit insurance, earnestly implement special arrangements for large-scale equipment export financing insurance, expand the scale of export credit insurance, and increase the coverage of export credit insurance. Further promote trade facilitation, actively expand imports, and promote trade balance.

Question: Since 2012, in the face of prominent fiscal revenue and expenditure pressures, how can people's livelihood expenditure needs be guaranteed? What new benefits did the people get?

A: In the first three quarters of 2012, national fiscal revenue increased by 10.9% year-on-year. Although the growth rate dropped by 18.6 percentage points year-on-year, national fiscal expenditures increased by 21.1%, and key expenditures such as people's livelihood were guaranteed. ^[5]

Since 2012, the central government has stepped up the policy of strengthening agriculture, benefiting farmers, and enriching farmers. In the first nine months, the country s total expenditure on agriculture, forestry, and water affairs was 730 billion yuan, a year-on-year increase of 24.9%.

Support the priority development of education. The national education expenditure in the first nine months was 1,258.8 billion yuan, a year-on-year increase of 32.6%.

Deepen the reform of the medical and health system and strengthen social security and employment. From January to September, national medical and health expenditure was 493.5 billion yuan, a year-on-year increase of 24.4%; national social security and employment expenditure was 943.2 billion yuan, a year-on-year increase of 17.8%.

Promote the development of cultural industries and cultural industries. In the first nine months, the national expenditure on culture, sports and media was 128.8 billion yuan, a year-on-year increase of 20.3%.

In addition, the subsidy for affordable housing projects has been further increased. As of now, the central government has issued 233 billion yuan in subsidies in 2012, an increase of 61.7 billion yuan over the actual amount released last year. The construction of affordable housing projects progressed smoothly. From January to September, the national spending on affordable housing projects increased by 34.1% year-on-year. As of the end of September, 4.8 million sets of affordable housing projects were basically completed, and 7.2 million sets were newly started, with an operating rate of 97%.

Question: In order to promote the realization of the 2012 economic and social development goals, in what other areas will the active fiscal policy be strengthened?

A: On the one hand, we must see that the economic growth rate has stabilized and continue to show positive changes; on the other hand, we must soberly realize that the foundation for economic stabilization is not yet solid enough.

In the next step, the financial department will closely track the development of domestic and foreign economic situations, adhere to the general tone of the work of progress while maintaining stability, continue to place steady growth in a more important position, maintain policy continuity and stability, and effectively This policy measure is put in place to track and observe the effect of the policy role, and strengthen pre-adjustment and fine-tuning according to the state of economic operation. ^[5]

At the same time, further optimize the expenditure structure, strengthen the scientific and refined management of finance, increase support for education, medical care, social security and employment, culture, and affordable housing, and work hard to solve problems that matter to the immediate interests of the people and promote economic stability. Rapid development and social harmony and stability. ^[5]