Research On The Influence Of The Preferential Tax Policy To Employment In Our Country

At present,the contradictions of employment increasingly prominent,accompanied by high unemployment,solving the employment problem has become the top priority.As the focus of our country's macro-control,preferential tax policies play an increasingly important role in promoting employment.In recent years,our country introduceed a number of policies,in order to improve the employment status of our country.However,what is the correlation between preferential tax policy and employment,to what extent can preferential tax policy create employment opportunities need to be confirmed.The purpose of this study is to analyze the influence of preferential tax policy to the employment and the industrial employment structure.Based on the analysis of the current situation of the employment and preferential tax policies in China,in this paper we combined with normative and empirical method to study the effect of preferential tax policy for employment.By building a VAR model on enterprise income tax and unit employment in cities and towns to analysis the relationship and grangercausality between the preferential tax policies and employment,from two aspects of employment and the industrial employment structure.The empirical results show that the preferential tax policy and employment is not independent of each other,but exist a certain correlation and granger causality.Preferential tax policy is the granger reason of the change of the employment situation.The preferential tax policy has certain promoting effect employment,but the effect is not significant,it is to say that the employment promoting effect of preferential tax policy is extremely limited.Therefore,we cannot only depend on the weak force of preferential tax policy in promoting employment.Although preferential tax policy is the focus of the macro-control,it can only be seen as auxiliary measures in promoting employment.Finally,combining with the empirical results and theoretical analysis to our country's current tax preferential policies,this study put forward some constructive suggestions.The research of this paper reflects the important role of tax policy in employment.