Employment Effect Evaluation Of Tax Reduction And Its Policy Optimization

Tax reduction and fee reduction is an important policy tool to stabilize market entities to ensure employment and stabilize economic operation,and achieve highquality development.With the development of economy and society,China’s employment status at the current stage is facing many new challenges,specifically manifested as the deep adjustment of population structure and economic structure makes ‘employment difficulty’ and ‘recruitment difficulty’ coexist,from the quantitative point of view,relatively less total labor demand needs to more fully absorb the total labor supply,total employment pressure still exists,from the structural point of view,industrial transformation and upgrading,technological progress brought about structural employment contradictions are prominent.Effectively solving these difficulties and contradictions has become a key link in the process of affecting the effectiveness of tax reduction policies,among which,as the driving force for stable economic operation and the basic plate carrying employment,market entities represented by enterprises are important hubs connecting tax reduction policies and stable employment.In this regard,in recent years,China has accurately implemented counter-cyclical economic adjustment,orderly launched a series of tax and fee reduction policies,starting from the aspect of protecting market entities,reducing the burden and adding vitality to hundreds of millions of market entities.However,affected by the impact of the new crown epidemic and multiple unexpected factors at home and abroad,market players still have difficulties in stable operation,technological innovation and transformation and upgrading,and their basic role in stable employment and the key role of promoting high-quality full employment need to be further strengthened.Therefore,it is urgent to strengthen the implementation of the policy of ensuring market entities by strengthening the tax policy regulation and control oriented to employment,and link the goals and tasks of consolidating existing employment,absorbing new employment,optimizing the employment structure,and entrepreneurship to drive employment with a series of combined tax and fee reduction policies,so as to stimulate greater endogenous development momentum to drive fuller and higher-quality employment.Based on the background of the reform of tax and fee reduction,this paper studies the multi-dimensional employment effects of different tax reduction policies from the perspective of labor demand based on the reality of new changes and trends in the employment field.Following the research idea of ‘research basis-theoretical basis-factual characteristics-empirical research-policy recommendations’,the key issues to be solved include: First,starting from the supply and demand sides of labor,systematically grasp the factual characteristics of employment scale,employment quality,employment structure and entrepreneurship in the new era;Second,a more comprehensive empirical assessment and theoretical explanation of the employment effect of institutional tax reduction policies in the new development stage are made;Third,identify the differentiated employment impact of the employment-oriented institutional tax reduction policy in the new era and the synergistic linkage mechanism of stabilizing the main body to ensure employment;Fourth,reasonably distinguish the policy focus of different tax reduction policy tools,and try to explore the relationship coordination and policy design of tax reduction policies under employment priority.In order to solve these key problems,this article mainly does the following work:Firstly,the relevant literature of tax reduction and employment is systematically sorted out around the research theme to clarify the blue ocean in the research field and the research positioning of this paper.Specifically,firstly,we will understand the reasons and objectives of tax cuts in different contexts from the historical retrospective of the motivations of tax cuts,and summarize the various economic effects of tax cuts as comprehensively as possible,including economic output and government revenue effects,labor and consumption effects,savings and investment effects,and other effects such as social welfare.Secondly,by reviewing the literature and theoretical development related to employment,the concept of employment within the scope of this paper is clearly defined,and based on this,the measurement and influencing factors of employment are further sorted out from three important aspects: employment level,employment structure and entrepreneurship-driven employment.Finally,focusing on the literature on the impact of tax reduction on employment,combined with the consensus and gaps of existing research,this paper identifies the research necessity of analyzing the employment effect of tax reduction from the labor demand side under China’s national conditions,and locates the research importance of tax reduction on employment among the factors affecting employment,so as to point out the direction for the marginal contribution of this paper.Secondly,the theoretical basis of tax reduction on employment is analyzed from three aspects: the impact of tax reduction on labor demand under Keynesian theory,the impact of tax reduction on labor supply under supply-side theory,and the impact of tax reduction on employment equilibrium under optimal tax theory.Then,considering that one of the important bases for the division of tax reduction policies is the type of tax,and the effect and mechanism of tax reduction affecting employment by different taxes or even different policies of a certain tax are different,the theory of the impact of different tax reduction policies on employment under the classification of taxes is summarized.Finally,combined with the research needs,this paper summarizes the important theoretical frameworks related to the research in this paper,and summarizes the mechanism of tax reduction policies on employment from the perspective of labor demand,mainly from the three aspects of labor market search matching theory,enterprise human capital investment theory and entrepreneurial choice theory under financial constraints,the search and matching process of the number of jobs and wage levels balanced by supply and demand in the labor market,and the decision-making basis and incentive mechanism of enterprise investment in employee human capital investment.On this basis,this paper attempts to provide a theoretical basis for the tax reduction policy to equilibrate employment,employment structure and entrepreneurship,and also provides an important foundation for theoretical extension and model setting for subsequent empirical research.Thirdly,according to the different stages and target requirements of economic and social development,we sort out and summarize the policy background of China’s tax reduction,and compare the policy objectives of tax reduction at different stages and the changes in relevant tax reduction policies.At the same time,the China Research Data Service Platform(CNRDS)Population and Employment Statistics(PESD)is utilized data and relevant data of the National Bureau of Statistics examine the changing characteristics of the national employment situation from the macro level,and deeply analyze the employment characteristics and development needs of China in the new era from the aspects of employment level,labor market supply and demand,and employment structure.From the perspective of labor demand research in this paper,the static analysis and dynamic comparison of the characteristics of employment facts by sample are further based on the division of economic type,industry and regional structure,and the necessity of solving the current employment problem from the perspective of labor demand is attempted,in order to find the driving force point for accurately implementing tax reduction policies to promote employment.Next,based on the shortcomings and gaps of relevant research,under the foundation of the theory,according to the policy background and the current situation and problems faced by employment,representative and researchsignificant tax reduction policies are selected from many institutional tax reduction policies,and the different impact effects of different tax reduction policies on employment are evaluated from the same research perspective.These include:First,we study the impact of tax cuts on employment for corporate employees.Starting from the employee tax reduction and the labor and employment relationship of enterprises,the dividend transmission mechanism of employee tax reduction is proposed,and the competitive game model between employees and enterprises is constructed on the basis of directional search matching theory,and the policy impact of individual tax reform is used to empirically study whether enterprise employee tax reduction can help enterprises produce positive job expansion effects,and the dividend transmission mechanism of employee tax reduction based on changes in enterprise labor costs.Second,we study the impact of tax cuts on employment due to the education of enterprise employees.From the perspective of improving the quality of employment and improving the structure of employment,the tax reduction policy is studied to encourage enterprises to optimize the allocation of internal human capital investment by implementing pre-tax deduction for employee education expenses.By constructing a human capital investment game model and combining the analysis of institutional background,the importance and necessity of employee education tax reduction in improving the human capital structure of enterprises are theoretically clarified,and the impact and mechanism of employee education tax reduction on the upgrading of enterprise human capital structure are empirically tested by using the employment structure breakdown data of listed companies.Third,we study the impact of inclusive financial tax cuts on entrepreneurship.Based on the interactive relationship and policy logic of financial support for entrepreneurship and entrepreneurship driving employment,focusing on inclusive financial tax reduction policy through the implementation of differentiated tax incentives helps reduce the service costs of financial institutions,and then guide the targeted allocation of loan funds to generate entrepreneurial incentives,on the basis of institutional background and theoretical analysis,using 2011-2019 China’s county-level data we empirically test the effect and heterogeneous effect of inclusive financial tax reduction policy represented by the exemption of value-added tax on the level of entrepreneurship represented by the exemption of interest income from loans of financial institutions,small and micro enterprises and individual industrial and commercial enterprises.It is worth mentioning that the internal logic of this article between different tax reduction policy choices mainly lies in: First,whether it is individual income tax reduction,enterprise income tax reduction or value-added tax reduction,whether the direct effect of the tax reduction policy is an individual,enterprise or financial institution,the employment effect it exerts is studied under the unified perspective of labor demand,which fully reflects the feasibility of implementing the combination of tax reduction policies under the employment priority strategy;Second,further,under the unified research perspective of labor demand,the theoretical mechanism and effect of different tax reduction policies on employment are different and emphasized,including the scale of enterprise labor employment,enterprise human capital structure and entrepreneurship-driven employment from the perspective of employment effect,which complement each other,are independent of different dimensions of employment,and closely linked to the goal of high-quality full employment,providing certain experience support for the employment synergy effect of combined tax reduction policy.The main research conclusions obtained through in-depth research and careful consideration of these contents are: First,by combing and summarizing the changes in specific tax reduction policies and the changes in the expression of tax and fee reduction in relevant policy documents,it is found that after experiencing the initial exploration stage of tax reduction,the structural tax reduction stage and the largescale tax and fee reduction stage,China has now entered the stage of accurate implementation of tax and fee reduction.Second,after using macro-level data to systematically analyze the employment situation of different economic types,industries and regional structures from the perspective of labor demand as a whole and based on labor demand,it is found that China’s employment situation is facing many new changes and trends under the overall stable situation.Third,following the idea of total to score,from large to small,the theoretical basis of tax reduction affecting employment,the theoretical overview of the impact of different tax reduction policies on employment based on tax classification,and the role mechanism of different tax reduction policies affecting employment from the perspective of labor demand are deeply analyzed,starting from the practical problems reflected in the employment status,reverse thinking about the internal logic between different tax reduction policy choices,so as to provide a certain amount experience support for the employment synergy of combined tax reduction policies.Specifically,these include: First,in view of how to improve the employment absorption capacity of enterprises,through the study of the employment impact of enterprise employee tax reduction,it is found that the individual income tax reduction of enterprise employees not only benefits individual employees and increases labor supply,but also stimulates labor demand through the competitive game mechanism of the labor market,alleviates the negative impact of labor costs,and has a positive job expansion effect on enterprises.Then,in view of how to improve the employment quality of enterprises and optimize the employment structure,by studying the employment impact of the tax reduction on enterprise employee education,it is found that the pre-tax deduction of enterprise employee education funds can encourage enterprises to spontaneously optimize the allocation of internal human capital investment,and promote the improvement of human capital structure of enterprises.Lastly,in view of how to support entrepreneurship and improve the ability of entrepreneurship to drive employment,through the study of the entrepreneurial impact of inclusive financial tax reduction,it is found that the exemption of value-added tax on the interest income of small and micro enterprises and individual industrial and commercial enterprises of financial institutions can reduce the service costs of financial institutions,guide the flow of loan funds,and promote the improvement of regional entrepreneurship.The research in this paper is helpful to better identify the differentiated employment impact of the employment-oriented institutional tax reduction policy in the new era and the synergistic linkage mechanism of stabilizing the main body to ensure employment.In order to reasonably distinguish the policy focus of different tax reduction policy tools,explore the relationship coordination and policy design of accurate implementation of tax reduction policies under the employment priority strategy,and provide six policy enlightenments: First,it is necessary to accurately implement tax reduction policies to improve the linkage efficiency of tax reduction policies to stabilize the main body and ensure employment;Second,it is necessary to establish a multi-dimensional employment characteristic standard system to accurately identify employment problems under the systematic grasp of the employment situation;Third,it is necessary to accelerate the improvement of individual tax reform,and release the dividends of stabilizing enterprises and expanding jobs from the perspective of alleviating the increase in labor costs;Fourth,it is necessary to the tax reduction policy around the accumulation of human capital continues to stimulate the endogenous motivation of enterprises to optimize the employment structure;Fifth,it is necessary to build an inclusive financial tax reduction policy system with fiscal and financial coordination,and strengthen the multiplier effect of entrepreneurship in key areas.Sixth,explore the implementation of combined tax reduction policies under different tax combinations to improve multi-dimensional employment synergies.