Tax Structure And Demographic Impact Studies On Household Consumption

Economic development of a country depends mainly on consumer demand and stimulateinvestment demand and export demand, the ratio of these three elements contribute toeconomic growth is different. In the long-term development of China’s economy, investmentand exports to the dominant role in stimulating the economy, while the proportion of thecontribution of consumption to economic development has been low, this seriously affectedthe steady growth of China’s economy. In theory, we should be how to stimulate consumerdemand as the focus of the study, because only when the consumer becomes the dominantforce in economic development, China’s economy in order to achieve sound and rapiddevelopment.This paper studies the impact of tax policy and population policy of householdconsumption. Adjust tax policies would affect consumption demand, demographic changeswill also affect the consumption demand; the age structure of populations of differentsensitivity to different tax will affect their propensity to consume, thus affecting consumptiondemand. Therefore, the influence of the tax structure and population structure of the consumer,and on this basis to explore particularly important in the current context of how the taxstructure in different age groups to promote consumer demand.This article is based on the above background and reasons, from the perspective of thetax structure and to analyze demographic consumer problems. The first part introduces thebackground, purpose and significance of the study, research and innovation ideas and methodsand difficulties of the study. The second part and the third part is the theoretical part, thesecond part introduces the changes in our tax structure and evolution of the evolution of theage structure of the population, but also analyzes the current situation of China’s householdconsumption rate; third part analyzes the tax structure the impact on consumer anddemographic composition, and their combined effect on consumption. The fourth part is theempirical analysis of the impact through the fixed effects model and panel data model toexamine whether the tax on consumption due to age. Due to data availability, we use the child dependency ratio and the elderly dependency ratio approximation instead of young and old.The fifth part is the conclusion of the analysis and countermeasures. According to the resultsof empirical analysis to formulate appropriate policies to expand household consumption.The empirical results show:(1)The child dependency ratio has a positive effect on theconsumer, the elderly dependency ratio on household consumption has a negative effect.(2)theproportion of direct taxes and household consumption was positively correlated.(3) the agestructure of populations of different sensitivity to different taxes, direct taxes, especiallyyoung people to be more sensitive to other people’s research which is not covered.Based on the above conclusions, we can to improve our residents improve consumptionrate personal income tax, social security tax, indirect tax structure and changes to optimizeother aspects of family planning policy.