A Study On The Employment Promotion Tax Policy

Employment, as a vital nexus to maintain the co-development of economy and human society has been the inevitable crux during the process of promoting economic development.And in China, a developing country with the largest labour force but comparatively inadequate natural resources, employment the focal point with great influence to social progress, harmony and atabilization.It is one of the working centers for current government to accomplish full employment as it is the precondition to ensure economic growth and civil living standards improvement. However, employment problems become increasingly conspicuous with the economic reform further deepened and economic conditions stably and healthily developed; moreover, it is crucial for the reinforcement of economic reform and the establishment of a harmonious society.Many approaches are applied to solve employment problems and promote economic growth, such as administrative, economic and legal measures, among which, tax policy is an important and effective one for government to adjust macro economy and ease unemployment. Government offices should advocate a wise and reasonable application of various tax policies and thus make it a driving force to solve unemployment problems.The existing employment promotion policies have exerted positive role in tackling unemployment, but there are still defects in the formulation, execution and management of existing policies.Western governments present many successful examples in these aspects for us:like to lower macro taxation to lighten enterprise's burden;to impose social security tax to establish a sound and consolidated social insurance system;and to implement tertiary-industry encouraging tax policies.Following are six chapters in different aspects to explicate this issue.The opening part is the introduction. The second chapter is mainly theoretical analysis on various employment promoting tax policies and their increasing influence to employment issue since governments'intervention to labour force market.The third chapter is an analysis about the influence of tax policies to employment conditions (from its influence to labour demand and supply).The forth chapter is cases study to expound the necessity of adopting tax policies to accelerate employment. In reference to existing employment promotion tax policies of western countries, the fifth chapter is proposals of concrete tax policies suitable for China. The last chapter is summary of previous content and an outlook for the future of Chinese employment promotion tax policies to deepen the author's ideas and provide enlightening reference for further study.