Research On The Legal System Of Tax Preference For Employment Promotion

Employment is an economic issue as well as a political issue. Especially those laid-off and unemployed workers of state-owned and collective enterprises who bear a huge price for the economic reform, their placement will directly affect our reform process and results. More and more economists and socialists point out that China should change the model of “growth priority” and set up the new development strategy of “employment priority” for which is the goal of economic growth as well as the requirement and guarantee of sustainable development. The “Employment Promotion Law”, implemented from January 1st, 2008, puts job promotion at the first position and establishes the policy system and institutional guarantee of job promotion. It advocates the integration of multiple ways such as the self-regulation of the labor market, independent job-hunting, government's employment promotion. This thesis, basing itself upon the background of encouraging employment and entrepreneurship so as to create jobs in multiple channels and multiple forms in the report of the Eighteenth National Congress of the CPC and the policy of cleaning tax incentives put forward in the Third Plenary Session of the 18 th CPC Central Committee, mainly analyzes and discusses the laws and regulations related to tax incentives which promote employment.Excluding the introduction and conclusion, the thesis is divided into four parts:The first part discusses the relations between tax incentives and employment promotion. This section mainly focuses on the theories of employment and the government's macroeconomic regulation and control as well as two basic methods of promoting employment, and meanwhile analyzes the promoting effects the tax incentives have upon employment.The second part mainly focuses on the typology and the evolution of tax incentives which promote employment. This section mainly introduces the specific content and the evolution of promoting employment and job-creation of such people as the disabled, the demobilized, the unemployed.The third part discusses the effects and insufficiencies of tax incentives which mainly focuses on promoting employment. Based upon two aspects of promoting employment of the disable and the business, the section analyzes the effects. On the above basis, this section further analyzes the insufficiency of the current systems in the legislative status, preferential objects, preferential scopes and related specific measures.The fourth part analyzes the improvement of the system. This section mainly gives a description of related improvement measures of tax incentives which promotes employment including establishing and perfecting the tax preferential legal system, expanding the scope of tax preferential and building a long-standing mechanism of tax incentives to promote employment.