Local government debt and corporate tax burden: A perspective based on the trade-off of government tax collection and management.

ABSTRACT: As an important source of local fiscal revenue, will enterprise tax be affected by local government debt? What role do the government's tax collection and management motives and behaviors play in this effect? By investigating the impact of local government debt on the actual tax burden of enterprises, this study shows that local governments have a trade-off of tax collection in the process of resolving the debt repayment pressure. The study finds that, in general, the expansion of local government debt has increased the actual tax burden of enterprises, which is mainly reflected in non-state-owned enterprises and enterprises that are collected and managed by the local tax department. The results of the mechanism test show that local debt pressure will encourage local governments to adjust

SUBMITTER: Tang W 

PROVIDER: S-EPMC10337903 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature