Tax Policies Of Employment And Reemployment Issues

Employment is the foundation of people's livelihood. Employment and reemployment are very important to social stability and economic development. At present, the employment and reemployment situation is extremely severe and has already become a great difficult problem of our country. However, in the key period of economic system transition, it is unrealistic to simply rely on the market mechanism to solve the employment and reemployment problem. Government should take various policies, including tax policy, to promote employment. Tax is an important tool of macro adjustments. The country should use this tool to promote the development of society and economics to solve employment and reemployment problem. As regards of present situation, on one hand, we should lay emphasis on tax system reform to keep higher economic growth rate and create the basic economic condition for employment and reemployment; On the other hand, we should use effective tax policy to adjust the industrial and economic structure to create more employment opportunities. The gist of this paper is how to use the tax policy to solve the employment and reemployment problem.The paper includes four parts as follow:The first part: theory analysis of tax and employment and reemployment relationship. At first, this part explains the impact of tax on labor demand through economic growth rate, economic structure, industrialized development mode, factor of production, consumption structure and scale of investment, etc. Secondly the author explains the tax influence on population growth, labor's quality, labor training mechanism and social security, etc.The second part: situation and problem of employment and reemployment. This part has explains the current situation of employment and reemployment in our country: huge unemployment; incongruous contradiction in the employment structure between urban and rural areas, employment structures of industry and employment structures of different economic sectors; The laid-off problem of unemployment is serious, which is a great characteristic of our present reemployment; The laborers' low education, and ineffective training mechanism, have influenced the stability of employment. Secondly the paper has explained there are two reasons for this situation: First one is social historical reasons; second one lies in the economic system.The third part: the impact of tax policy on reemployment and employment. I have explained the influence of current tax policy on reemploy and employment from the aspect of the adjustment of economic structure, elastic of employment and employment target.The fourth part: tax policy of the employment and reemployment in our country. This is a core part of this paper. Through the analysis of theory, current situation, the author proposes the employment and reemployment tax policy of our country from five respects. 1. Implement of the tax preferential policy; 2. Implement tax policy of improving employment elastic; 3. Perfect the tax policy of imports and exports, expand the international market and increase employment; 4. Perfect the educational tax policy, improve laborer's ability of obtaining employment; 5. Reform the current tax system, promote employment and reemploy.