Research On The Current Enterprise Income Tax Policy To Promote Employment In China

Employment is not only an economic issue,but also closely related to people's livelihood.Under the new normal,China's economic growth is gradually shifting from high speed to high quality development.At the same time,the industrial structure is gradually transforming from low value-added industries to high value-added industries,and employment is facing pressure and challenges in terms of both total and structure.To settle this problem,besides the market itself,we should also support the macrocontrol of tax policies,economic leverage in the employment problem.Compared with other types of taxes,employment is more directly affected by corporate income tax,and the state has designed a number of corporate income tax reduction and exemption incentives from different angles to stimulate employment.The employment structure in the past five years shows that the proportion of the employed people engaged in the tertiary industry is the largest and tends to increase,and Shanghai is one of the municipal districts with the most developed tertiary industry in China.In this context,it is necessary and urgent to take the tertiary industry of Shanghai as an example to study the current corporate income tax policies to promote employment in China.First of all,this paper starts from the classical theories such as tax transference and end-result,Keynes employment theory,and so on.On the basis of clarifying the connection between enterprise income tax and employment,it theoretically analyzes the impact of enterprise income tax on labor demand and its ways from the perspective of long-term end-result and private investment.This paper draws the following conclusion: on the one hand,the government directly guides the increase of labor demand by formulating corporate income tax policies;on the other hand,it indirectly increases labor demand by promoting economic development or industrial structure adjustment.Secondly,based on the tax revenue and employment in China,this paper analyzes the employment status of the tertiary industry in Shanghai,which finds that the proportion of output value of the tertiary industry in GDP in Shanghai was 17.7% higher than that of the whole country in 2018.This gap means more room for economic growth,more potential for job creation and deeper integration of innovation and economic development.In addition,this paper comprehensively sorts out the corporate income tax policies that have direct or indirect influence on employment since 2000,and finds that there are some improper aspects such as limited beneficiaries of the policy,insufficient consideration of heterogeneity of the location of enterprises,complicated procedures for enterprises to obtain relevant qualifications,and unreasonable connection and change of tax policies.Then,this paper uses empirical analysis method,taking 111 listed companies in the tertiary industry in Shanghai from 2013 to 2018 as valid samples,and adopts the fixed effect model with modified heteroscedasticity,serial correlation and crosssectional correlation to evaluate the impact of actual corporate income tax burden on employment level.It is found that the actual tax burden rate of enterprise income tax is negatively correlated with the number of employees of listed companies in the tertiary industry in Shanghai.When the total number of employees was replaced by the growth rate of the number of employees in listed companies,the results were also robust.In a comprehensive sense,the tax reduction is conducive to the promotion of labor supply and demand and the optimization and upgrading of industries.The higher tax burden is not conducive to the increase of the total number of jobs and the growth rate.In addition,it summarizes the highlights of income tax policies issued by the United States,the United Kingdom,the European Union and other countries or economies to promote employment,and further supports suggestions.Finally,combining with theoretical and empirical analysis,as well as international experience,this article puts forward suggestions to promote employment and realize the harmonious development of society,such as expanding the enterprise income tax policy benefit object,giving full consideration to enterprise locus heterogeneity,simplifying relevant qualification authentication procedures,improving the long-term stability of the tax policy,continuing to increase incentives for the tertiary industry and so on.