Fiscal Policy, Promote The Development Of China's Domestic Service

Family Services is an emerging service industry,which targets to meet the households'everyday living needs, providing various related services to families, which covers more than 20 categories and 200 kinds of services, such as domestic service, community service, pension services,patient escort service, and so on. Currently, Its total annual turnover has come to more than 1,600 billion yuan, holding more than 1500 million employees and having about 14 million potential jobs. Family Services has a great and potential market, and has become an key industry, not only could meet the needs of family life, improve people's living standards, but also helps to expand domestic demand, increase employment and promote economic development, and plays an important role in the national economy. Under the new period, to develop domestic service vigorously and improve its share in the national economy is an imprtant measure to implement the spirits of the Seventeenth Party Congress, adhere to the guidances of scientific concept of development, people-oriented and promote economic and sociality develop comprehensively, coordinatedly and sustainablely. Since the 21st century, with the economic and sociality's rapid development and people's living standard improved constantly, unprecedented development and profound changes has occurred in China's urbanization, modernization, families' small-sized,the degree of aging population, lifestyle'diversification, high pace of work and service to the community,and the domestic service shows a booming developing trend of supply and demand, the market prospect is very broad. However, influenced by many factors, China's domestic service is still in the early stages of development in generally, can hardly satisfy the growing demand for family services, there is an obvious contradiction between supply and demand, the industry develops unstandardizedly, the industry's riskings increases gradually, urban and rural regional' development is unbalanced, the quality of employees is not high, unstable, and the practitioners-group grows unsteadly, all of them can not be overlooked. Domestic service's market has great potentiality, which might become the next new bright spot of economic growth, but the current domestic and foreign research are obviously insufficient, most of them only focused on the significance of its development, current status, problems or macro-policy on the development, there is little concerned of how to promote the development of Domestic service systematically and in-depthly. Based on this, and based on the already existed researches, this paper studies the family services industry' current development status, developmental problems and its deep-seated reasons in-depthly and comprehensivly; Then through analyzing and summarizing the shortcomings and defects of our current Fiscal policy in promoting the development of family services, and learning from foreign's successful fiscal policies, practices and experience, this paper, from the perspective of government's management of economic and social functions and promote the realization of long-term strategic development goals of the industry perspective, puts forward the basic ideas and the specific recommended measures about how to perfect the corresponding fiscal policy.The whole paper is divided into seven chapters, the main contents and conclusions are as follows:Firstly, based on the introducing of the related backgrounds, meanings and related literature review, this paper conduct the theoretical analysis about why the fiscal and taxation policies should support developing the domestic service. Aftering explaining the content, features, trends and future development rules of the domestic service industry, and discussing the importance and necessities of developing family services, this paper probes the corresponding theoretical biasis of fiscal policy supporting the industry, mostly from perspective of the relationships between the the government and market, and between the government'functions and the fiscal policy' financial functions. And then puts forward that no matter in terms of promoting employment, expanding domestic demand, promoting economic development, improving people's livelihood strategies,developing the small-and-medium enterprises,or accorrding to the proper functions and abilities of government in the domestic service's initial developing stages, the finance and taxation policy should and could has the ability to do something in developing the Family Services, which can promote the development of the industry from both supply and demand, through using the fiscal expenditure, budgeting, government purchases, subsidies and other means comprehensively and flexibly.Secondly, this paper summarizes and analyzes the current status and existing problems of the supporting fiscal policy concerned of developing family services. Through in-depth analysising and researching, it proposed that it is the Government's failing to create a fair and orderly competitive environment for the micro-enterprises,involving in the micro area of competition unproperly, lacking of sufficient support for training employees, failing to provide proper services and public goods and designing the tax system poorly and irrationly that caused the family services's supply and demand contradiction, the industry's unstandardized developing, regional, urban and rural's highly unbalanced development and so as other such issues. And points out that our current fiscal policy in promoting the development of the industry has much problems and deficiencies, such as lack of inadequate financial investment, irrational investment structure, investment way backward, inefficient use of funds, unreasonable tax system designed.Thirdly, this paper makes a comparative study of the fiscal policies's successful practices and experience on promoting domestic service abroad. After analysising and drawing on the developed countries'successful practice and experience of fiscal policy to promote the domestic service. It brings forward that the future tax policy for developing domestic service in our country should identify its supporting focuses and directions,and points out that increasing financial input, providing adequate public goods, improving public service system,reforming and improving the optimization of tax system, designing rational tax incentives,and using financial subsidies, transfer payments,government purchases and tax relief integratedly are powerful and effective measures to accelerate the development of supply and demand.Fourthly, the paper gives a rough forecast analysis on the domestic service future market demand according to the industry's development trends and future requirements, and try to research from the macro level of economic and social development to adapt to the requirements of our industry strategic objectives. This research believes that the future market demand for domestic service in China has great potentiality, to meet the market needs, the industry should not only focus on the future development of co-ordination of regional and urban development, ervice-oriented sub-levels, the development of sub-categories, market-oriented diversification of the main development, but also focus on the industry's informatization, networked developing, adhere to the developing path of corporatization, professional, industrialization, adhere to the multi-faceted, multi-level, comprehensive, rapid, healthy and sustainable development.Fifthly, this paper puts forward the basic ideas and concrete suggestions concerned of reforming and improving China's fiscal policy for domestic service. The Study suggests that, in accordance with the domestic service development strategies and directions, the formulation of the future fiscal policy for the family services should focus on creating a fair competitive market environment, emphasize coordinating the regional policy and industrial policy, pay attention to the role of policy-oriented, oriented the central government and local government rational division of responsibilities, regard discrimination towards basic security model family services and commercial family services, and take into account the policy's different characteristics,eg, forward-looking, scientific, timeliness, flexibility, developing. And also the policy should pay attention to the effective integration of short-term goals and long-term objectives in the industry development, it's necessary for the policy to consider the slopes and differences in the industry' different stages in vertically, and consider the policy's distinctions and unity between different types of family services in horizontally, ensuring to build a workable, sound,comprehensive, scientific fiscal policy supporting system for the domestic services, bringing in enormous social and economic effects really. Research proposes that we should using various fiscal measures flexiblely and comprehensively, create a favorable market environment for the industry's developing,and emphasizes that strengthening its proper function to manage the supply and demand of domestic service is the priorities and keys to improve the corresponding fiscal policy. The specific measures should include:improve the optimization of the tax system, guide the industry develops standardly; increase the investing on education and training, promote the industry to enhance the overall quality of human capital; establish a sound social security system and promote the practitioners team develops stablely; increase transfer payments, construct and improve the industry's public service system, and promote the industry's developing coordinatedly and differentially. optimize the structure of financial investment, innovate the investing ways,and enhance the effectiveness of the use of funds; increase government's purchases to expand the industry demand space; encourage developing and purchasing commercial insurance, reduce the risk of developing the industry; innovate financing methods, and resolve the plight of corporate finance; increase the fiscal policy's tax supporting for non-profit family service organization and optimizate others supporting policies management and supervision system,such as the land, the media, associations, and so on.