Abstract: Alleviating the painful feeling of corporate tax burden and the stickiness of tax burden will help the enterprises to expand production scale and improve innovation capabilities. Recently, China has achieved remarkable results in the reduction of taxes and fees, however, the financial pressure of various local governments is increasing in the context of economic downturn, and enterprises still feel that they are“overtaxed”. In view of this situation, this paper makes use of the sample data of A-share listed companies in Shanghai and Shenzhen stock markets from 2009 to 2020 to study the impact of fiscal pressure on the stickiness of corporate tax burden. The results show that the taxation stickiness commonly exists in China’s A-share listed companies, and that a lagging period of fiscal pressure has a significant impact on the sticky corporate tax burden. If the financial pressure continues to increase, the tax authorities may focus on the large scale enterprises or enterprises with a high degree of tax avoidance, resulting in greater tax stickiness and increased“painful feeling”of tax burden. This is mainly manifested that when the corporate profit increases, the marginal increment of the noted corporate income tax is significantly larger than the marginal decrease when the profit decreases. Therefore, the government should establish a coordination mechanism for reducing taxes and fees and alleviating local financial pressure, accelerate the construction of local main tax system, coordinate the tax reform and tax collection and management system, and reduce the elastic room of tax collection and management, so as to reduce the stickiness of corporate tax burden. Meanwhile, enterprises should improve their tax compliance, foster their own tax core competitiveness, and rationally conduct tax planning activities to reduce tax bearing stickiness.

Key words: local financial pressure, stickiness of corporate tax burdens, painful feeling of text burden, reduction of taxes and fees