Lou Jiwei, Chairman of the Board of the National Social Security Fund, said recently that promoting the policy of tax cuts and fee drop and simplifying administration should deepen the reform of "decentralization of power, integration of management and optimization of service" in the next step, and in particular, it is necessary to grasp the handling of externality matters and to ensure that "good things are done well". In respect of tax cuts, the annual revenue for 2017 is 17.3 trillion yuan, an increase of 7.4%. This growth has a tax reduction effect. If fiscal revenue is synchronized with nominal GDP growth of 10.5% (6.9% + 3.6% deflator), fiscal revenue for the full year should be 17.8 trillion yuan, reflecting an abatement effect of about 500 billion yuan more than actual income. Taking into account the higher association of revenue growth with the PPI, if last year's PPI is estimated at 6.3%, the estimated tax cuts will be even greater. This shows that our tax reduction is real and the effect is obvious. Lou Jiwei further analyzed that there is still room for tax cuts, the government should promote income tax reform, increase corporate income tax research and development deduction, personal income tax be changed to comprehensive collection, reduce the tax burden on middle-and-low-income groups, to avoid personal taxation into "payroll tax" and forming a reverse regulation. As for the drop in fees, fees and charges for non administrative license examination and approval classthat are not based on lex superior have all been cleared up at the level of the central government. However, at the local government level, there are still a large number of fee-charging items in this category of "gray areas" and this should be the focus of the next step in lowering costs.