Local Financial Pressure and Corporate Tax Stickiness

作者：Yuee Xu · 发表于：Advances in economics, business and management research/Advances in Economics, Business and Management Research · 年份：2023 · DOI：10.2991/978-94-6463-260-6_36 · 研究领域：Corporate Taxation and Avoidance、Fiscal Policy and Economic Growth、Taxation and Compliance Studies

In recent years, China's various tax reduction policies have achieved remarkable results, but the economic downturn has increased the financial pressure of local governments, and enterprises still feel that the tax burden is too heavy.By exploring the relationship between local financial pressure and corporate tax stickiness, this paper provides empirical evidence for enterprises to reduce the pain of tax burden.The empirical research finds that: with the increase of corporate pre-tax profit level, the increase of corporate tax burden is significantly higher than the decrease when corporate profit level drops, that is, there is tax stickiness; In addition, this paper also found that Local financial pressure can increase corporate tax stickiness.Based on this, this paper proposes that the government should perfect the fiscal decentralization system, release the financial pressure and ease the pain of tax burden.