A Study On Improvement Of Transmission Mechanism Of China’s Employment-related Tax Policies

At the crossroads of a new era, China is facing a series of social change. Thetransformation of development mode, the upgrade of economic structure, and thedevelopment of urbanization inject new vitality, and bring many problems as well.However, employment, which relates to people’s lives closely, has become a hot topicin recent years. Employment relates to the country’s stability. For the sustainabledevelopment, a stable social environment is indispensable.Although scholars in domestic and overseas do not regard the relation of tax andemployment as a mainstream, a lot of books and documents can be seen. The maintopics of these passages are as follows:1. Government’s ability to influence the employment through taxation.2. Through labor demand and supply, analyzing the impact of taxation onemployment levels.3. Employment-related tax policy evaluation studies.The government has always kept an eye on employment issue, and actively triedto use tax and other macroeconomic levers to seek solutions. Since the1990s later,many employment-related tax policies have been introduced in China, which has hada slight positive influence on employment. However, because of the imperfect designand the transmission mechanism, the actual effects of policies are not so strong. Thispassage focuses on the problems in transmission mechanism, and offers suggestion.This paper is divided into five parts:1. IntroductionThis part introduces the background, research status and structure of the paper.2. Theory on the relationship between employment and taxThis section mainly describes the social significance of employment, and analyzes therelationship between employment and tax policy.3. Summary of employment-related tax policy in ChinaThis section makes a summary of the current existing employment-related tax policyof China.4. Effects of tax policy on employment in ZhejiangThis section builds a model to analyze the actual effects on employment of Zhejiang.5. Proposals to improve tax policies to China’s employmentThis section is the core chapters, and finds out the problems of China’s currentemployment policy, then make proposals for improvement. The conclusion of this paper is that employment-related tax policies havepositive effects on employment of Zhejiang, but very slightly. In light of this, theauthor makes a suggestion on improving the transmission mechanism from six angles,such as tax burden, minor enterprise, tertiary industry, education and training, ruraleconomy and tax administration.