Income Tax Reduction and Labor Productivity of Small and Micro Enterprises
Tax reduction is an important means to help small and micro enterprises relieve pressure and enhance vitality,and plays an important role in improving enterprise production efficiency and development quality.Based on the National Tax Survey data from 2016,this article uses the bunching method to evaluate the impact of the income tax reduction policy on the labor productivity of small and micro enterprises.The main results are as follow:① For sharply reducing the tax rate to 10％,the marginal firms will reduce their taxable income by an average of about 33,000 yuan to meet the conditions for tax reduction,which can lead to a bunching effect near the 300,000 yuan notch point of taxable income.② The compliers will significantly improve their labor productivity due to receiving corresponding tax benefits.On the one hand,tax cuts can encourage enterprises to expand the scale of fixed assets investment and labor employment.On the other hand,they will also provide support for the introduction of technology and the research and development of products.In this way,it can help enterprises achieve the complementarity of capital and labor,as well as the improvement of innovation capabilities,thereby effectively promoting the long-term development of production and operation.But overall,the role of tax reduction in improving labor productivity through employee incentives is still relatively limited.③ Heterogeneity results show that the policy of income tax reduction has a significant rescue effect for enterprises with small scale,short establishment time,low profits and significant financing constraints.When the groups enjoyed combined tax and fee reductions and faced with certain tax administration,the effect of tax policy for labor productivity promotion would be better.
Small and Micro EnterprisesTax IncentiveLabor ProductivityBunching
NETL
NSTL
万方数据
