Why does the Central Economic Work Conference emphasize structural tax cuts?

The Central Economic Work Conference emphasized the continuation of a proactive fiscal policy and a prudent monetary policy, highlighting the importance of countercyclical and structural adjustments. To effectively implement the proactive fiscal policy, it is essential to refine the structural tax reduction strategy in alignment with ongoing tax reforms. Local governments are urged to adopt strict budgetary controls, minimize general expenditures, and allocate resources more efficiently toward priority areas. The conference also stressed the need to enhance the structural tax reduction policy through tax reform, reflecting the government's regulatory intent to focus on structural tax cuts as a core component of the active fiscal approach. This includes advancing the transition from business tax to value-added tax (VAT), a key reform that has already been initiated. The new leadership has placed significant emphasis on tax reform, elevating its importance and clearly outlining its content, which raises the question: why is this reform so critical? First, a new round of fiscal and tax reform represents a low-cost, low-risk, high-consensus, and mature reform initiative with promising outcomes. There is widespread public support for such reforms, especially regarding their role in driving economic transformation. As a result, resistance to change remains relatively low. Second, the new leadership has sent clear policy signals by continuing to push forward these reforms. Fiscal and tax system reforms can catalyze broader changes, particularly through the introduction of "budgetary democracy" and "legal rights." These concepts involve greater transparency in how the government collects and spends money, requiring public approval through the legislative process. Taxation must be legally regulated and publicly accountable, reinforcing the idea that fiscal reform is not just an economic tool but a fundamental political and legal transformation. Third, tax reform is closely tied to the redistribution of financial powers between the central and local governments, making it a vital part of the income distribution system. For instance, tax reductions can increase corporate profits, leading to higher wages for workers and a more equitable income distribution. Additionally, the integration of business tax into a shared tax system requires a redefinition of local revenue and authority. Finally, the reform reflects the pragmatic approach of the new leadership in promoting economic development. The 18th National Congress highlighted the need to adjust the economic structure and strengthen the real economy. A key aspect of this adjustment involves boosting the tertiary sector, particularly modern services that create jobs. The shift from business tax to VAT and the reduction of corporate taxes are specific measures supporting this goal. By prioritizing structural tax cuts, the new leadership sends a strong signal of commitment to economic transformation and real growth, marking a meaningful step forward in reform.

Asphalt And Concrete Road Milling Teeth

Asphalt and Concrete Road Milling Teeth,High Asphalt Milling Picks Road Bits,Asphalt and Concrete Road Milling Tooth Milling Picks Road Bits,Rock Drill Dth Hammer Button Bits

Zhenjiang Weir Machinery Technology Co., Ltd , https://www.weircuttingpicks.com