The Study On The Impact Of Tax System On Consumer Behavior

Since reform and opening up, China's economy has achieved rapid development, but in the high-speed economic growth, we are faced with various issues, such as a widening of the income gap and the excessive consumption of resources. In order to achieve the harmonious development of society, we need to rethink China's economic growth mode, but changing the pattern of economic growth is a long-term process, amending the development concept to adjusting the macroeconomic policy is a process of recognition and validation, and in this process, the effects of macroeconomic policies are closely linked with the consumer behavior. Therefore, we need to recognize the interactional mechanism between the macro policy and consumer, improve the efficiency of macro policy, guide the consumer's consumption pattern which is propitious to continued economic growth, thereby indirectly guide producer choose a resource-saving production mode. This paper focuses on studying the impact of tax policy on consumer behavior, assessing the effects of the current tax system, and putting forward several suggestions about perfecting current tax system under the objective of promoting equitable distribution, environment-friendly and saving natural resources.In order to study the impact of tax system on consumer behavior, this paper first introduce the establishment and development of China's tax system and the basic situation of foreign tax system, and then understand the characteristics of China's current tax system through analyzing the two aspects. Subsequently, this paper analyze the impact of tax system on consumer choice mechanism, the focus is analyzing consumption tax, personal income tax and resource tax, which show that the price indirectly affect consumer choice. Given that consumption structure is a reflection of consumer behavior, this paper use the data 1995 and 2006 to analyze the changes about China's consumption structure of urban resident by extend linear expenditure system model, the results show that urban resident's consumer demand structure has undergone great changes: the basic demand has increased by the time; resident's consumption tendency has changed from the basic livelihood to other goods and services. This paper also analyze the various types of commodity's price elasticity and the impact on consumer spending, as well as different income groups'price elasticity of demand , the results show that different types of commodity's price elasticity is not the same, different income groups have different price elasticity of demand on the same type of commodity. On the other hand, this paper use the data from 1990 to 2006 to analyze the impact of tax system on labor supply, the results show that in China's current economic level, income effect is more than substitution effect on the tax of labor, the labor rate for urban resident and the labor supply have positively correlated relationship. Empirical results directly or indirectly explain the influence degree of consumer behavior by tax policy, which is the basis for assessing of the effect of policy, and finally this paper propose some suggestions to perfect China's tax system.