Try the macroeconomic model you ve learned and analyze how the tax cuts will affect the macroeconomy

Tax cuts on the macroeconomy.

The impact is that tax cuts are generally considered to increase macroeconomic development, but also weaken the country's ability to macroeconomic control, and the reduction of taxes directly means a decrease in income, which will have an impact on infrastructure, long-term investment, exchange rate resistance, etc.

Tax reduction is the deduction of a part of the tax payable by the taxpayer in accordance with tax laws and regulations. Tax reduction is to support, encourage or take care of certain taxpayers and tax objects to reduce their tax burden.

A special provision. Like tax exemption, it is also a policy measure formulated by combining the seriousness and flexibility of taxation, and it is a generally adopted tax preferential method. Since tax reductions and exemptions are often used in conjunction with tax laws, people are customarily referred to collectively as tax reductions and exemptions.

Tax reductions are generally divided into statutory tax reductions, specific tax reductions and temporary tax reductions. The tax proportion reduction method refers to the tax payable calculated in accordance with the provisions of tax laws and regulations.

A method of reducing the tax payable by a certain percentage in order to reduce the amount of tax payable by the taxpayer.

The reason why tax cuts lead to higher interest rates is that tax cuts lead to higher consumption and more cash on hand, so the demand for money rises, and when there is no significant change in the money supply, interest rates rise, and private investment falls. The tax cut policy is an expansionary policy. It is to cooperate with the supply-side structural reform.

An important measure to promote economic growth and stimulate market vitality. It is a preferential tax policy implemented by the state for qualified enterprises, units and individuals.

Structural tax cuts are not only different from comprehensive, large-scale tax cuts, but also different from the previous tax burdens that have increased and decreased.

Adjustment, structural tax reduction emphasizes selective tax reduction, which is to reduce the level of tax burden for specific groups and specific types of taxes in order to achieve specific goals. Structural tax reduction emphasizes the internal optimization of the tax structure and the pace of being close to the real economy, which is relatively more scientific. The adjustment of the tax burden with increases and decreases means that the base and total amount of tax revenue are basically unchanged; Structural tax cuts, on the other hand, focus on tax cuts, and the overall level of tax burden is reduced.

Because there are fewer taxes, buying things cheaper, and being more willing to consume, sales, production, transportation and other links will be developed, but it also weakens the country's ability to macro-control, and the reduction of taxes directly means a decrease in income, which will have an impact on infrastructure, long-term investment, exchange rate resistance, etc.

Tax cuts can boost employment, expand consumption, increase domestic demand, and strengthen the service industry. The average tax burden on Chinese service companies is higher than that of all OECD countries, and the tax disparities faced by the service sector and industry also make industrial companies reluctant to outsource the services they need in order to reduce their tax burden.

As a result, the efficient development of the service industry has been hindered. Exports of services are not eligible for tax rebates, which also affects exports of services. With the further development of the economy, the increase in the proportion of the service industry relative to the industry will play a role in increasing the proportion of labor remuneration, because the proportion of labor remuneration in the service industry is higher than the proportion of labor remuneration in industry.

Therefore, efforts to promote the development of the service industry, tax reduction should be an important direction to find countermeasures to increase labor remuneration.

Tax cuts are generally considered to be macroeconomic development, because there are fewer taxes, things are cheaper, we are more willing to spend, and then sales, production, transportation and other links will be developed.

However, it has also weakened the country's ability to regulate and control macroeconomically. The reduction in taxes directly means a decrease in revenues, which will have an impact on infrastructure, long-term investment, exchange rate resistance, etc.

Tax cuts are another means of aggregating wealth.

Tax cuts are generally considered to be coupled with macroeconomic development, because there are fewer taxes, cheaper things to buy, and more willing to spend, and then sales, production, transportation and other links will be developed.

Reducing the corporate income tax rate can promote the destocking and deleveraging of enterprises, while the reduction of leverage and the reduction of triangular debt can increase the liquidity of enterprises, promote the liquidity of the secondary market of money and capital, and the commodity market can also be more prosperous in both purchase and sales.

Analyze with PPF. Marginal production possibility. Let the typical consumer function c=(1-t)(h-l)w r; T tax rate, h total hours worked, l leisure, r corporate profit transfer.

Typical enterprise y=zf(k,n)=zf(k,h-l); market equilibrium condition y-g=c; So.

zf(k,h-l)=(1-t)(h-l)w r;Derivative of l on both sides; mpl=(1-t)w;So the slope of ppf = the slope of the budget line is balanced at the time! Consider taxation in the absence of tax or a lump sum tax rather than income tax. Then there is a balance of utility and efficiency at the same time!

I said that I couldn't tell this for sure, and he didn't let him upload it**. You should also give the conditions, then if the income tax situation is adopted. This results in a flatter budget line.

Therefore, consumers cannot meet the maximization of their profits, because at this time, the aftermarket must make up for efficiency! Therefore, only the intersection of the indifference curve and the intersection of production efficiency can be maximized. As a result, a decrease in utility was found.

The greater the tax, the lower the utility. Leisure decreases, consumption increases. The overall efficiency has declined.

Aggregate output rises. The model of the decline in real wages is purely for the analysis of tax rates, see Williamson, Macroeconomics, Chapter 34. This analysis is pertinent.

Of course, you can also use other simpler models, but they won't be so specific. It is also impossible to analyze the variables associated with economic fluctuations in the event of a tax shock.

At the same time, producers will hire more workers, and the wages of workers will increase accordingly, which will increase the spending power of the consumer market. Producers will also sell abroad while selling domestically, which also promotes exports to a certain extent. In this way, investment, consumption, and exports will be boosted.

If nothing else, the economy will improve. Other factors include factors such as politics.