A Study On The Influence Of "Business Change Increases" On Residents’ Consumption Structure And Policy Optimization

On January1,2012, Shanghai carried out the substituting the Value-added tax for Business tax reform. Transportation departments and some part of the modem service industry should be brought into the scope of VAT, this suggests that the substituting the Value-added tax for Business tax reform has turn into the stage of practice from the stage of theory discussion. As the government has been implementing the structural tax reduction policy, the substituting the Value-added tax for Business tax reform will gradually expand the scope of its expansion circumference and will be expected to be taken place in the nationwide. Therefore, the research of its effect has theoretical and practical significance.On the other hand, the government put forward the strategy of transforming the pattern of economic development, pointing out to promote economic growth by investment and export turned into relying on consumption, investment and export coordinately. The expansion of consumption become one of the most important aspects of the economic development in the new period, the domestic consumption was highly hoped to become the main pulling engine of economic growth. How to expand consumer demand and promote the optimization of the residents’ consumption structure upgrading has becoming a hot spot of domestic academic research. The purpose of this paper is to study the effect of substituting the Value-added tax for Business tax reform on the residents’consumption structure, then offer recommendation about substituting the Value-added tax for Business tax reform policy. The main content of the research is as follows:The first part studied the urban and rural residents’ consumption structure in China. At first, analyzed the current situation of urban and rural residents’ consumption structure comparatively. At second, studied the alteration of the urban and rural residents’consumption structure. At last, summarized the current situation of urban and rural residents’ consumption structure and the trend of their development.The second part has carried on the theoretical analysis of substituting the Value-added tax for Business tax reform effect on residents’ consumption structure. This part included two aspects of content, one is affecting residents’ consumption through income effect, the other is affecting residents’consumption through price effect.The third part empirically analyzed the effect of substituting the Value-added tax for Business tax reform on residents’ consumption structure. Firstly studied the alteration of the tax burden of related consumption industry after and before the reform. Secondly according to the alteration of the tax burden, using some method to measuring the income effect and price effect.The fourth part put forward some policy recommendations on substituting the Value-added tax for Business tax reform according to de analysis above. At First, to promote substituting the Value-added tax for Business tax reform actively, to expand the expansion circumference; At second, to decide more suitable expansion rates and improve the input VAT deduction system of expanding industry; At last, to consider the impact on the residents’ consumption when select the further expanding industry.