Local Financial Pressure and Corporate Tax Stickiness

DOI

10.2991/978-94-6463-260-6_36How to use a DOI?

Keywords

Local financial pressure; Corporate tax stickiness; Pain of tax burden

Abstract

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.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Yuee Xu
PY  - 2023
DA  - 2023/09/28
TI  - Local Financial Pressure and Corporate Tax Stickiness
BT  - Proceedings of the 2023 International Conference on Management Innovation and Economy Development (MIED 2023)
PB  - Atlantis Press
SP  - 278
EP  - 285
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-260-6_36
DO  - 10.2991/978-94-6463-260-6_36
ID  - Xu2023
ER  -