The Theoretical And Empirical Analysis Of The Effect Of Business Tax On China's Insurance Industry

The development of insurance is mainly concerned with the macroeconomic policy, especially the tax policy. The tax policy can adjust the structure of the insurance industry, effectively spread the risk and compensate the financial loss. Therefore, it is important to continuously improve the insurance tax system, which can stimulate the development of the insurance industry, increase insurance coverage, and strengthen the insuranee function of social management.Our current insurance business tax system has been built up since 1983. Although the tax policy has changed several times, there are still many problems with it. Now as the reforming and opening up is deeper and deeper, China's insurance industry has entered a period of rapid development. Great changes have taken place inside and around insurance industry. The original business tax policy of insurance can not meet the current needs of the insurance industry. It is imminent to reform China's insurance business tax system. At the beginning of reforming, we need to know exactly how the current insurance business tax policy affects the insurance industry.This article is divided into six chapters. In the first chapter, we mainly introduce the research purpose, ideas, innovation of methods and the literature review.About research methods, we use theoretical analysis and empirical analysis. In the theoretical analysis, we mainly combine the equilibrium analysis and tax burden transforming theory together. In addition, we also use comparative analysis. About the empirical analysis, we use multiple linear regression analysis.The frame of the paper is from the theoretical analysis to the present situation analysis and then to the empirical analysis, and finally give the recommendations of policy reforming.There are several innovations in this paper. Firstly, the number of researches on insurance tax system is small. Secondly, in this topic, there are few researches using empirical analysis.In the second chapter, we use some theories to analyze the effect of insurance business tax burden on China's insurance industry.In the third chapter, we introduce the present situation of China's insurance business tax system, which include the basic definition, the history of China's insurance business tax system, the present policy and the problems with it.In the forth chapter, we compare the foreign insurance business tax system to ours and learn the enlightenment.The fifth chapter is about the empirical analysis. We use multiple linear regression to learn the effect of insurance business tax on China's insurance industry. And due to the results, we give some recommendations of policy reforming in Chapter Six.