Research On Tax Policy To Promote The Consumption Of Chinese Residents

For a long time,the "troika" of driving economic growth-investment,export and consumption-has made significant contributions to China's economic growth.In the past,China's economic growth was mainly driven by investment and exports.In recent years,China's economic growth has slowed down significantly,from a high speed to a medium-high speed.At present,China's investment market is approaching saturation,and the contribution rate of investment has been fluctuated greatly.The trade dispute between China and the United States will also bring a certain degree of negative impact on China's export,so it is difficult for China's economic growth to be driven by investment and export continuously in the future.Compared with the high risk of investment and the instability of export demand,consumption is more sustainable and can actively and effectively support China's economic development.Therefore,the key to driving China's economic growth in the future lies in driving China's consumption growth.Consumption is divided into government consumption and household consumption,among which household consumption occupies the main position,so the key to driving consumption growth lies in driving the growth of household consumption.The economy determines the tax revenue,and the tax revenue will in turn affect the economy and thus the residents' consumption.In recent years,China's tax system has been constantly updated and improved.Therefore,it is of great practical significance to study the impact of tax policy on the residents' consumption.Firstly,this paper sorts out some relevant western consumption theories and analyzes the mechanism of tax policies affecting residents' consumption.Secondly,it describes the current situation of Chinese residents' consumption and taxation.Using the panel data model,this paper makes an empirical analysis from five respects,namely,macro tax burden,tax structure,circulation tax system,income tax system and property tax system,to study the impact of tax policies on residents' consumption.According to the results obtained from the empirical model and combined with the current situation of China's tax system,it is found that China's tax policy in the macro tax burden,tax structure,turnover tax,income tax,property tax and social security system there are factors restricting the growth of household consumption.Finally from the above six aspects of China's tax policy to improve the proposal to promote the growth of China's residents consumption.This paper conducts six chapters:Chapter 1 is an introduction with the research background,theoretical significance and practical significance of this paper,and summarizes the research results of foreign scholars from two aspects: the impact of tax burden on consumption and the impact of specific taxes on consumption.This paper summarizes the research results of domestic scholars from three aspects: the effect mechanism of taxation on residents' consumption,the empirical research on taxation restricting residents' consumption and the Suggestions on improving taxation system to promote residents' consumption.This paper introduces the research contents,adopts the methods of literature analysis and empirical analysis,and puts forward the innovation points and shortcomings.Chapter 2 is related theoretical analysis.Section 1 briefly introduces some western consumption theories,including Keynes' absolute income theory,Modigliani's life cycle theory and precautionary saving theory.Section 2 mainly introduces the action mechanism of taxation on household consumption,respectively from the macro tax burden,turnover tax,income tax,property tax and tax structure.Chapter 3 is the analysis of the current situation of Chinese residents' consumption and taxation.Section 1 Analyzes the current problems of China's resident consumption,such as low final consumption rate,low consumption quality and large difference in consumption structure between urban and rural residents.Section 2 analyzes the general situation of China's current tax policies from two aspects of the overall tax burden and tax structure.Chapter 4 is the empirical analysis of the impact of tax policy on household consumption.In order to avoid collinearity and false regression between data,two models are established: Model I selects the resident consumption rate as the explained variable,and selects the proportion of macro tax burden and direct tax as the explanatory variable,and analyzes the impact of macro tax burden and tax structure on resident consumption through multiple regression model.Model II's explained variable is residents' per capita consumption expenditure,the explanatory variables are residents' per capita value-added tax,per capita business tax,per capita consumption tax and per capita personal income tax,the control variable is residents' per capita disposable income,and analyzes the impact of various tax incomes on residents' consumption through multiple regression model.The results show that income has the greatest impact on household consumption.The increase of macro tax burden and turnover tax will restrain household consumption,while the increase of direct tax proportion,income tax and property tax will promote household consumption.Chapter 5 is the analysis of the tax policies that restrict the growth of Chinese residents' consumption.According to the above theory,the present situation and the empirical analysis,the study found that the existence of Chinese tax policy macro tax burden is heavier,unreasonable tax structure,the circulation tax system resulting in a decline in consumer demand,lack of income tax to adjust income distribution,property tax system is not perfect and lack of social security taxes,inhibits the growth of residents' consumption in our country.Chapter 6 is to promote the consummation of China's resident consumption tax policy recommendations.In view of the problems mentioned above,Suggestions on perfecting tax policies that can promote the growth of Chinese residents' consumption are put forward from six aspects,namely,appropriate reduction of macro tax burden,reasonable optimization of tax structure,appropriate reduction of circulating tax rate,deepening of income tax reform,accelerating the improvement of property tax system and promoting the social security "fee to tax".