Evaluation of the Effect of Tax Reduction and Exemption Policies During the Epidemic

Since the outbreak of COVID-19, in order to fully recover the economy, support the orderly development of local economy, and coordinate the local industrial structure with the whole social economy, China has issued a number of tax reduction and exemption policies in line with the epidemic, and various localities have thoroughly implemented the tax reduction and exemption policies under the call of the state. Practice has shown that these tax reduction and exemption policies have effectively promoted economic recovery, improved the happiness index of taxpayers, and made important contributions to the fight against the epidemic. However, it is undeniable that during the period of fighting against the epidemic, China's tax reduction and exemption policies still need to be further improved. Therefore, this paper will analyze the effects of tax reduction and exemption policies during the epidemic from four aspects. First of all, this paper introduces the nature of the impact of major public emergencies on the economy and the mechanism of economic action of tax policies, and accurately grasped the tax reduction and exemption at the theoretical level, laying a theoretical foundation for the subsequent evaluation of tax reduction and exemption policies. Secondly, this paper will carry out the interpretation and analysis of the reduction and exemption policies of corporate income tax, personal income tax, value-added tax and consumption tax during the epidemic. Thirdly, we collected data to comprehensively evaluate the effect of tax cuts and exemptions during the epidemic. Finally, we should not only see the positive side of tax reduction policy, but also correctly face its shortcomings and give the author's suggestions.