Research on the Effects of Tax Expenditure to Promote Economic Growth

摘要

Tax expenditure is a kind of popular policy instrument for nations to implement the target in terms of economic growth. By means of tax expenditure, governments can allocate the flow of capital, stimulate the activity of the laborers, encourage the development on science and technology and protect environment. Thus, governments can fulfill the macro-economic control in order to obtain a stable, high-speed and continued economic growth. This paper made a conclusion to theory, mechanism and structure of tax expenditure in promoting economic development. Meanwhile, the author made an analysis on the current tax expenditure and economic development situation and figured out problems of Jiangsu province. Then by the demonstrative method, the author tried to find out the practical effects of economic development resulting from tax expenditure, which may help to optimize the management of tax expenditure of Jiangsu province.