How does the change in income tax affect sales performance? Our paper explores the direct link between economic policy and salesforce management at the transactional level. In October 2018,🔸快乐10分玩法说明 implemented a nationwide personal tax cut, raising the standard deduction from ¥3,500 to ¥5,000 per month. We compare the individual sales performance of a fashion firm before and after the change, and find that those salespersons who benefit from the tax cut have increased sales more, compared to others. Such performance gain is observed immediately after the tax cut and persists in future months, and is higher for low-income regions. Furthermore, we find that the improvement mainly comes from the increased effort to sell more valuable items to customers, instead of simply giving more discounts or working longer hours. Finally, as the firm has higher sales and thus pays more corporate tax, the net effect of the tax cut increases the government's revenue.

zklara@ceibs.edu