Studies On Taxation Policies That Based Upon Expanding Employment

Obtaining employment is the fundamentality of democracy and a policy to stabilize the country; it is also an important content of building a harmonious society. In our country, with a long period, the conditions of employment will be still serious; therefore it is a hard task to expand employment for us now and for some time to come. The Central Party Committee and the State Council always attach great importance to work on employment, and have carried out many fiscal, taxation and monetary policies to increase employment. The thesis begins with more than 20 fiscal and taxation policies for expanding employment that issued by the Treasury Department and the State Administration of Taxation in the 1990's, its attention is concentrated on the main Preferential Tax Policies, and points out that the current Preferential Tax Policies can't meet the needs of increasing employment now and for some time to come. By learning from foreign experience, the thesis also gives some advices on improving the Preferential Tax Policies, they are the following:1. The macro-economic policy must be turned unhesitatingly from focusing on the increasing of economy to focusing on the increasing of employment. The former must obey the latter, and we must try to improve economy by expanding employment. So in designing the Preferential Tax Policy, policies will be slanted to those industries, departments, and areas that can lead powerfully to expanding employment.2. The key point of the Preferential Tax Policy must be turned from focusing on the people who are out of work and the reemployment of special groups excessively to increasing jobs. It means that we must change ideas about policy, changing from be temporary to be long-term, from focusing only on some groups to paying attention to the whole society. We must further improve the system of the Preferential Tax Policy with the main line of developing economy and the goal of expanding employment.3. The methods of the Preferential Tax Policy must be flexible. It is important to draw attention to policy content for forming a complete system. About the policy methods, we can practice tax relief, low tax rate, tax deduction, accelerative depreciation, investment deduction, losses balance, and expense deduction and so on separately or jointly for the most favorable results. About the policy content, we can practice different tax rate and tax point during the process of creating, development, reinvestment, technological studies, association and reorganization of companies to promote employment.4. The Preferential Tax Policy must be turned from policy aspect to legal aspect. The previous Preferential Tax Policies were always issued and carried out with the form of "policy documents", they are less authorized and serious than the law, so in the future, the Preferential Tax Policy must be issued with the form of the law to incarnate the spirit of governing the country with the law.