Research On The Tax Policy For Expending Medium Class Consumption Demand

Medium income class is a new word that emerged in our country recently. The president of people republic of China Hu Jintao claimed a new requirement that "make medium income class majority" at the seventeenth party congress, which represented that the research in the medium income class had been one of the most important subjects in academic circles. Since the 2008 China's economy suffered from the outbreak of global financial crisis, we should allow the important effect of consumption full play in driving economic growth in the condition of insufficient investment and weak exports and other issues. Simultaneously, we should confirm that the upgrading of consumption structure and size expansion is the original driving force of economic growth, and the most stable and important factor of economic growth.Recently, medium income class has been defined as the spark plug of the development of social structure, they bolster the overall economic structure of consumption rising. As the subject of this paper, medium income class has the general economic characteristics of the social structure development, but also has special consumption performance in economic evolution. This paper was based on the definition of medium income class. Through analyzing the consumption status and problems of medium income class in Jiangxi province, the author proposed suggestions from the angle of tax policies to expand the consumption demand of medium income class.Specifically, this paper can be divided into five parts:In the first part of the introduction the author described the background of this paper, including research status, research ideas and methods, and innovation of this paper and shortcomings; in the second part, the author firstly defined the medium income class, then introduced the theory of consumer demand and the impact of taxation on consumption demand, as the theoretical basis of the proposal. The third part of the paper was discussed around the medium income class consumption status in Jiangxi province, in this part the author fully analyzed the consuming level and structure; in the fourth part, the author focuses from tax point of view of our current tax policy in the promotion of middle class consumption inadequacies; Finally, in the fifth part of the paper, the author have proposed suggestions from the view of tax policies to expand our medium income class consumption demand based on macroeconomic conditions in China.