Through the analysis of the evolution of tax reduction and fee reduction policy in China, this paper explains the relationship between substantial tax cut and fee reduction and high-quality economic development. High quality economic development needs to take supply-side structural reform as the guideline to promote the quality, efficiency and power changes of economic development. The goal of China's tax cut and fee reduction policy is to achieve high-quality development, improve the quality of economic growth and economic structure by reducing value-added tax, achieve enterprise efficiency reform by reducing enterprise income tax, and improve the knowledge content and technology level of China's economic growth by reducing the personal income tax of high-level talents, so as to achieve dynamic change. First, based on "double incentives" of China's enterprise income tax support of national innovation system, we need to further improve the tax support system for high-level talents, and form "triple incentives" for national innovation system. Second, we need to build a "multi-pillar pension model" for the government, enterprises and residents, so as to lay the institutional foundation for the "light load" of enterprises. Third, we should adapt to the trend of economic and financial development and strengthen the fair taxation of the digital economy. Fourth, we need to implement high-quality collection and management to ensure the implementation of the "substantial tax cut and fee reduction policy". Fifth, we need to smooth the fiscal relationship between the central government and local governments.