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What happened to private enterprises? "You can't just look at the macro policy, but also listen to the true feelings of private entrepreneurs." Li Shuguang, chief professor of finance at Tianjin University of Finance and Economics, decided to go to the middle of the entrepreneur to listen and have a look.
At the beginning of 2016, he and the Chinese Academy of Social Sciences professor Feng Xingyuan launched the “Research on the Taxation of Private Enterprises in Chinaâ€. After nearly a year, the team of experts has gone to private cities in four cities including Guiyang, Wuhan, Hangzhou and Dalian. Conduct an investigation in the enterprise.
The government frequently recruits for the burden reduction of enterprises
In fact, as one of the five major tasks of supply-side reform, it has become a consensus for companies to reduce burdens. From this point of view, we can see clear government intentions and sincerity in reducing the sincerity from the 2016 government work report. “Moderately expand the fiscal deficit, mainly used for tax reduction and fee reduction, and further reduce the burden on enterprises.â€
Different from the previous “structural tax reduction and universal fee reductionâ€, in 2016, it first proposed “reducing the macro tax burden†and promised to “ensure that all industries have only reduced the tax burdenâ€. The goal is to help entrepreneurs save their real money in their pockets.
According to the expectation, the full implementation of the “reform of the camp†and the cancellation of the government fund and other policies that will be established in violation of regulations will directly relieve the enterprises and individuals from the burden of more than 500 billion yuan a year. At the same time, the State Council decided to phase down from May 1 The corporate social insurance contribution rate and the housing accumulation fund deposit ratio, together with other rates that have been reduced previously, are expected to reduce the enterprise cost by more than 120 billion yuan per year.
Under a series of tax cuts and fees, China’s macro tax burden has stabilized at around 29% after a period of rising. According to the statistics of the International Monetary Fund (IMF), China's macro tax burden in 2014 and 2015 was 29.1%, lower than the world average of 38.8%. Of course, the tax burden is high and low, because the statistical caliber is different, there has been a lot of controversy.
Li Shuguang analyzed China's tax revenue in the 10 years from 2005 to 2014 according to the type of enterprise. It found a phenomenon. Under the trend of rising total tax revenue year by year, the tax contribution rate of state-owned enterprises showed a downward trend as a whole, while the non-public tax revenue contribution rate was In the continuous rise, especially after 2009, almost one year, a step, from 2.75 trillion yuan to 6.66 trillion yuan in 2014, accounting for 51.43%. As a result, he gradually focused his attention on the private enterprise group.
The symposium became a "speaking meeting"
Li Shuguang found that there are not many investigations about the survival of private enterprises, and most of them are officially initiated. He wants to engage in "the investigation of the people themselves."
To this end, the survey initiated by several scholars can not only have stylized questionnaires and icy figures. Private entrepreneurs and scholars have to talk and chat together to "listen to the truth", which is an important part of the research process.
What surprised Li Shuguang was that the forum often became a "suffering meeting." A female entrepreneur who has been in the business for nearly 20 years talks about the business that has been in business for many years. She can’t afford to pay for up to a week. She can’t help but cry. “It’s too difficult, I can’t hold it down. It is."
This is a machinery manufacturing enterprise that has a considerable scale and produces lifting equipment. It is also the most affected enterprise in the economic downturn. Li Shuguang said: "In this wave of economic downturn, large-scale, high-cost, heavy-asset manufacturing companies have been hit hard, and heavy industry has been devastated."
In order to keep the company that has worked hard for more than ten years, the female boss put all the savings into it, and because she was ignoring the family in the enterprise, "the family was sacrificed, but nothing was left for himself." â€
What makes her even more embarrassed is that, for the transformation and development of the enterprise, she called her daughter who had a high-paying position in a large foreign company after overseas study abroad to help her. "At the beginning, I ordered her to come back and promised to give her 10,000 to 20,000 yuan per month. The salary and the good prospects of the family business can not even be paid now."
The cry of women entrepreneurs is not a case
The private enterprises participating in the survey are located in the four regions of China's eastern, central, western and northeastern regions. Hangzhou, Wuhan, Guiyang and Dalian are the representative cities of each region. Basically, at least 30 enterprises are surveyed in each region, covering the National Bureau of Statistics. The 12 major industries that are divided are “cannot be said to represent the whole of China, but they do have some typicalityâ€.
The survey found that some companies struggled hard, some rely on tax evasion and tax evasion, some transferred assets to foreign countries, and domestic enterprises became empty shells. There are many cases in North China, and there are more in the Northeast and Central regions.
After talking with entrepreneurs, Li Shuguang deeply felt that many private entrepreneurs were affected during the economic downturn. "If the private entrepreneurs feel that they do not see hope, it will be very unfavorable to China's economic development." Li Shuguang said that the future of China's economic development must rely on people rather than relying on money.
87% of entrepreneurs feel that the tax burden is heavy and heavier
How much is the difficulty in operating private enterprises and tax burden? Li Shuguang painted two V-shaped lines to make the crux of the problem clear.
He chose to analyze China's economic development from a longer period of time from 1978 to 2015. In such a time background, one of them represents the trend of China's overall GDP trend. There have been several peaks and fluctuations in the meantime, but the general trend is like the inverted V word; the other line representing the macro tax burden of the enterprise is positive. The trend of the V word.
The positive and negative two V stacks reflect the current situation of the enterprise: under the economic downturn, the heavier macro tax burden becomes the “unbearable weight†of the enterprise.
If we use numbers to express the level of tax burden, it is an objective representation; then, when it comes to tax burdens, it is often mixed with more subjective feelings, which is called “enterprise tax burden painâ€, that is, 10 points are also paid. Some taxes feel okay, while others feel that they can't keep going.
Private enterprises that account for more than 90% of Chinese companies have a stronger sense of tax burden. This is evident in several sets of data in the survey: 87% of entrepreneurs believe that the tax burden is heavy and heavier, and that only the tax burden is acceptable. 8%, while only 1% is considered lighter and lighter. “It reflects that the overall tax burden level in China may have seriously impaired business operations.â€
So what is the actual tax burden rate of the enterprise? According to the new "four budgets" algorithm, the overlapping parts are removed, which is about 37%. At present, more than 90% of the government's tax revenue is paid by enterprises. As pointed out by tax experts, China's corporate tax burden and macro There is a similarity of up to 90% between tax liabilities.
In addition, the corporate tax burden can also be measured by the “total corporate tax rate†in the World Development Index published by the World Bank. The so-called "total tax rate" refers to corporate taxation and various mandatory contributions, including income tax, labor tax (five insurance and one gold), the turnover tax burden that cannot be passed on, and the proportion of other various taxes and fees to commercial net profit. .
In China, the total corporate tax rate is generally in the middle of the world before 2012, and it has risen sharply from 2012 to 2013. The total tax rate for the next three years is 68.7%, 68.5% and 67.8%, respectively. High levels, higher than high-income countries, are also higher than the average for middle-income and low-income countries. The 2016 data has been released, and China has returned 68%, indicating that efforts to reduce the tax burden for enterprises have been limited this year.
View the specific composition of China's total tax rate of 68% in 2016, of which 10.8% is profits tax, 48.8% is labor tax, and 10.8% is other taxes. It can be seen that the relatively large tax burden is labor tax, that is, the company as an employer In 2016, the “five insurance and one gold†expenditures paid by employees were three times the world average of 16.3%.
Li Shuguang said that in China, except for emerging industries and finance, most companies have profit margins of 10% or so. The average ratio of taxes and fees of 67% is enough for most private enterprises to be in trouble. This is also a reason for China’s current economic downturn."
The tax burden of the second industry is much higher than that of the tertiary industry. The research team member Jian Jianwen had a clear feeling when investigating. The tax burden of online stores and physical stores was severely uneven. It was also the main business entity. For the e-commerce that was rapidly emerging in the era of "Internet +", China did not have a sound tax system. In Hangzhou, there is a person in charge of clothing and e-commerce that reflects, "No one else pays, only I pay, don't you lose?"
Repetitive charges, unreasonable design, etc.
The survey found that the types of taxes that entrepreneurs consider unreasonable are more concentrated in urban land use taxes and taxes related to real estate, which constitutes a large cost problem for enterprises. Another unsatisfactory tax for entrepreneurs is corporate income tax. In addition, the problems in the taxation procedures and tax system design have more problems than the tax rate of the enterprises, indicating that the feelings of the Chinese entrepreneurs on the tax burden did not stay at the intuitive level, but saw the influence of other factors besides the tax rate. Many entrepreneurs expressed their high expectations for the future rule of the tax system in China.
Another phenomenon is that the reform of the camp is a good thing for the company, but some companies say that the tax burden is not decreasing. Among the companies surveyed, 57 companies experienced changes in the camp reform, and 36 of them reported an increase in tax burden.
The enterprises that reflect the increase in tax burden after the reform of the camp are mainly distributed in the construction industry, real estate industry, finance industry, insurance industry, pharmaceutical industry, agricultural product processing industry, accommodation and catering industry. The main reason is that the input tax of some industries is difficult to obtain, the financing cost is not allowed to deduct the input tax, the tax deduction between the financial industry and the real economy has not been opened, and the year-end bid-ask spread of financial products is not allowed to be carried over to the next fiscal year. As well as the accumulation of tax burden after the tax reform, resulting in unreasonable tax structure, these have increased the burden on enterprises to varying degrees.
There are also complaints from entrepreneurs that “payment of five insurances, one pension, one hundred yuan, and water conservancy construction funds†is under great pressure. Some enterprises have to pay taxes when they do not make money, and they feel very embarrassed and lose taxation enthusiasm. .
At the same time, the poor taxation experience also affects the taxpaying enthusiasm of entrepreneurs. Zhang Lin, a member of the research team, analyzed the results of the field survey and found that 24% of entrepreneurs believed that they had a longer time to negotiate with the tax authorities, and 44% believed that they had to pay abnormal fees to the tax authorities. A person in charge of a hydraulic equipment company said that when the factory was built in 2005, a small quality inspector would have to take 200-300 yuan to complete the concrete building, and such a quality inspector would run dozens of construction sites every day.
Li Shuguang explained the necessity of establishing a light tax structure by using the "dead angle loss" in economics. Because of the taxation, the consumer surplus and producer surplus achieved by the market have become smaller, and most of the tax has been turned over to the government. In addition, consumers and producers still have a portion of the lost market surplus that the government could have obtained but did not get it. This part of the loss is called "dead angle loss" in economics. There is a "dead angle loss", so our tax sources are unstable and entrepreneurs are not optimistic. Because only the producer surplus is lost, the enterprise still has a way to live. If the taxation is excessive, there will be a “dead angle lossâ€, that is, the producers and consumers will lose, and the government will not get it. At this time, the prospects for economic growth are not optimistic. This is the main reason why many non-public enterprises (mostly private enterprises) are facing difficulties in survival, the government's tax revenues are difficult to increase, and consumption is weak.
Li Shuguang said that "dead corner loss" is an important discovery in economics. In the modern market economy, transactions can create wealth, so there is a saying that transactions can increase wealth by “out of nothingâ€. Now, because of the existence of “defective loss of taxâ€, it is the opposite of “nothing is born†and belongs to “having no middle schoolâ€. It is.
Li Shuguang believes that how to more reflect the light taxation thinking that is more adaptive to the market economy in the future tax reform, neither increasing the level of the overall macro tax burden nor increasing the corporate tax burden, is a major issue that needs to be deeply considered.
The female entrepreneurs who can't hold on, crying and crying, the tax burden of private enterprises is obviously painful.
Abstract If the national economic operation data map is regarded as the medical examination form of the Chinese economy, then one of the sharp downward arrows has to attract attention. According to the latest data released by the National Bureau of Statistics, the national fixed asset investment growth rate of 8.3% from January to October this year, some media said that this...
If the national economic operation data map is regarded as the medical examination form of the Chinese economy, then one of the sharp downward arrows has to attract attention. According to the latest data released by the National Bureau of Statistics, the national fixed asset investment growth rate was 8.3% from January to October this year. Some media said that this figure was the lowest since 2000; the private investment growth rate was only 2.9%, compared with 5 years. 25.2% of the previous period was called “falling cliff downâ€.