What's the deal with tax rebates

"Tax rebates" are tax incentives for local governments. Used to support and reward the local enterprise better development of a kind of initiative. For example, if you pay 1 million dollars of value-added tax in the same year, the government will return 5 points (i.e., 50,000 dollars). In some areas where the technology is lacking or the economy is less developed, the government will encourage some high-tech industries to set up here, and the way of encouragement is to reduce or exempt taxes. This is to promote local development and introduce new technology industries. Tianjin tax incentives include some policies to encourage the development of new industries. There are also some foreign enterprises, the local government in order to attract foreign investment, will also be tax incentives.

A. Taxation

Taxation is a normative form of the state in order to provide the society with public **** products, to meet the needs of the society **** the same needs, in accordance with the provisions of the law, to participate in the distribution of the social product, mandatory, free of charge to obtain financial income. Taxation is a very important policy tool.

Taxes are the most important form and source of revenue for the state (government) public **** finances. The essence of taxation is the state to meet the needs of the social public ****, by virtue of the public **** power, in accordance with the standards and procedures prescribed by law, to participate in the distribution of national income, mandatory acquisition of fiscal revenue formed by a special distribution relationship. It embodies a specific distributional relationship between the state and taxpayers in the distribution of the benefits of collection and payment of taxes under a certain social system. Marx pointed out that 1. "Taxation is the economic basis of the organs of government and nothing else." 2. "The economic embodiment of the existence of the state is taxation." Engels stated, "To maintain this public **** power, it is necessary for the citizens to pay a fee - a tax contribution." Holmes, a 19th century American judge, said, "Taxes are the price we pay for civilized society." All these illustrate the important role of taxes in the economic life of the country and in the civilization of society.

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Taxes are divided into national taxes and local taxes. Local taxes are further divided into: resource tax, personal income tax, personal incidental income tax, land value-added tax, urban maintenance and construction tax, vehicle and vessel use tax, property tax, slaughter tax, urban land use tax, fixed asset investment direction adjustment tax, enterprise income tax, stamp duty, etc..

Taxes are mainly used for national defense and military construction, payroll for national civil servants, road transportation and urban infrastructure construction, scientific research, medical and health epidemiology, culture and education, disaster relief, environmental protection and other fields.

The functions and roles of taxation are the concrete embodiment of the nature of tax functions. Generally speaking, taxation has the following important basic functions:

Organization of finance

Taxation is a form of distribution in which the government participates in social distribution by virtue of the state's coercive power and concentrates a portion of the surplus products (no matter whether they are in the form of money or in kind). The organization of the state revenue is the most basic function of the tax native.

Regulation of the economy

The government's participation in social distribution by virtue of the state's coercive power will inevitably change the share of the various social groups and their members in the distribution of national income, reducing their disposable income, but this reduction is not equal, and the gain or loss of this benefit will affect the taxpayer's economic activity and behavior, and thus have an impact on the social and economic structure. The government makes use of this influence to guide the socio-economic activities in a purposeful way, so as to adjust the socio-economic structure in a reasonable way.

Supervision of the economy

The state, in the process of collecting and obtaining revenue, must be built on the basis of daily in-depth tax management, specific grasp of the tax sources, understanding of the situation, to find out the problem, supervise the taxpayers to pay taxes in accordance with the law, and with the violation of the tax law and order to fight against, so as to supervise the direction of socio-economic activities, and to maintain the order of social life.

The role of taxation is the function of taxation in certain economic conditions, the specific performance of the effect. The role of taxation is specifically manifested in the ability to reflect the fair tax burden, promote equal competition; regulate the economic aggregate, maintain economic stability; reflect the industrial policy, promote structural adjustment; reasonable regulation of distribution, promote *** with the rich; safeguard the rights and interests of the country, promote the opening up of the world, and so on.