Core Viewpoint - The Chinese government's macro tax burden policy has shifted from seeking "stability" to maintaining a "reasonable level" of macro tax burden, indicating a new approach to fiscal policy and public service funding [1][4]. Summary by Sections Macro Tax Burden Definition and Historical Context - Macro tax burden refers to the proportion of government revenue to GDP, reflecting the government's share in national income distribution and its relationship with enterprises and individuals [1]. - Since the implementation of the tax-sharing system reform in 1994, the macro tax burden has fluctuated, with significant reductions following large-scale tax cuts initiated in 2016 [1][2]. Current Tax Burden Levels - As of 2024, the small-caliber macro tax burden is projected to be approximately 12.9%, down from about 18% a decade ago, indicating a decline of around 5 percentage points over ten years [2]. - The general public budget revenue as a percentage of GDP has decreased to 16.8%, and the total government budget (after removing duplications) is below 30% of GDP [3]. Implications of the New Policy - The shift to "maintaining a reasonable level" emphasizes the need for a balanced approach, avoiding both excessively high and low tax burdens, which could impair fiscal capacity and public service provision [4][6]. - A low macro tax burden may hinder the government's ability to provide essential public services, while a high burden could stifle market vitality [4][6]. Recommendations for Future Tax Policy - The reasonable level of macro tax burden should be dynamic, adapting to economic development and public service needs, rather than being a fixed value [6]. - Current recommendations include stabilizing the tax burden, optimizing tax structures, and enhancing the income of middle and low-income groups to ensure fiscal sustainability [6][7]. Tax Incentives and Fair Competition - There is a call for the cleanup and standardization of tax incentive policies to ensure fair competition across industries, as existing policies may lead to uneven tax burdens and market distortions [7].