From the theoretical analysis to the optimal macro tax burden in the framework of endogenous economic growth, this paper discussed the importance of study the problem of optimal macro tax burden for sustained economic growth. According to the 1994-2016 data of our country from the provinces, cities, autonomous regions, we analyzed the relationship between macro tax burden, fiscal expenditure and total factor productivity using the panel threshold model. The result is that the control interval for sustained economic growth of China's optimal macro tax burden is 14.22%-18.76%.In the optimum range of macro tax burden, Inhibitory effect of macro tax burden on the total factor productivity is minimum. Finally, according to the empirical analysis results, at present our tax burden is too high, put forward policy recommendations to reduce the tax burden and optimize the structure of fiscal expenditure.

Yanfeng Jiang. Study on China’s Appropriate Tax Burden and Tax Reduction Space for the Construction of Innovative Economy. International Journal of Frontiers in Sociology (2022), Vol. 4, Issue 4: 55-70. https://doi.org/10.25236/IJFS.2022.040411.

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