Tax Incentive Study Of Corporate Charitable Donations

Economic development and social transformation will change people's lifestyle and quality,but they will not necessarily narrow the gap between the rich and the poor.As the second largest economy in the world,our economic strength has already taken the lead in the world,but the "Gini coefficient" is far beyond the international warning line.In addition,the promulgation of the "Charity Law" has made charity more and more noticed by people.Charity,as the third income distribution which supplements the second income distribution such as taxation and government expenditure,is able to narrow the gap between the rich and the poor.Especially the corporate,the main force of charity in China,play an important role in narrowing the gap between the rich and the poor.Based on these,from a government perspective,this paper takes enterprises as the research object,aims to study how to use tax to encourage corporate charitable donations,narrow the gap between the rich and the poor and improve social welfare.In order to achieve these aims,this paper follows the "discovery problem-seek methods-to solve problems" way to research.Firstly,it summarizes the defects of tax incentive for corporate charitable donation in China by comparing domestic and foreign tax incentive to corporate charitable donations.Secondly,the paper analyzes the mechanism of different taxation factors affecting on corporate charitable donations,such as taxation rate,pre-tax deduction ratio,total tax payment,and taxation cost,form the perspectives of income transmission mechanism and price transmission mechanism,by using economics related theory.Based on the data of listed companies,the author also uses the data of listed companies to conduct empirical analysis using the double logarithmic linear regression model to verify the actual impact of the above factors on corporate charitable donations and seek solutions to the problems.Finally,based on empirical analysis and international reference,in response to different aspects of the problem,the paper propose relevant recommendations to optimize the tax incentive system,increase corporate charitable donations,and enhance social welfare.