The Research On The Impact Of Tax Cuts And Fee Reductions On Employment

The employment problem is not only an issue of people’s livelihood and stability,but also related to sustainable economic development.After the economy has entered the new normal,the economic and employment situation at home and abroad is complex and severe,and the contradiction in the labor market is prominent,which is manifested by the pressure and challenge on the quantity and quality of employment.Since the 18 th CPC National Congress,China has focused on keeping businesses and employment stable,increasing employments support for key groups,cultivating new forms of employment,and implementing various employment priority strategies and active employment policies,among which the policy of reducing taxes and fees has become the main means of macro-control.So,whether the tax reduction and fee reduction can play the role of releasing water and raising fish,helping enterprises to stabilize jobs,and how to affect the quantity and quality of employment has become a topic worthy of in-depth study.Based on this,this paper focuses on analyzing the mechanism of the employment effect of tax and fee reduction,empirically testing the effect of tax and fee reduction policy on employment from the two dimensions of quantity and quality,and puts forward the optimization path for the further improvement of the tax and fee reduction policy to promote employment.This is of great significance to better guarantee and improve people’s livelihood,expand and stabilize employment.In terms of the number of employment,taking 717 small and medium-sized enterprises listed on the board of Shenzhen Stock Exchange from 2014 to 2019 as samples,the fixed effect model is used to control variables such as enterprise size,financial structure,wages and salaries of employees and profitability.First of all,based on the overall perspective,this paper studies the impact of comprehensive tax burden and social insurance premium on employment,and estimates the sample of heterogeneous enterprise s.Secondly,based on the structural perspective,this paper examines the impact of value-added tax,corporate income tax and social security premiums on the number of employment in labor-intensive industries,capitalintensive industries and technology-intensive industries respectively.In terms of employment quality,the International Labor Organization uses "informal employment" to describe the form of employment in which there is no formal employment relationship,dissociated from government supervision,and the quality of employment is difficult to guarantee.In this paper,the number of workers who do not enjoy social insurance benefits to measure the size of informal employment,and then quantify the quality of employment.Using the panel data of 31 provinces,autonomous regions and municipalities directly under the Central Government from 2008 to 2018,this paper examines the impact of tax and fee cuts on the quality of employment.The findings are as follows:(1)The comprehensive tax burden rate and social security rate borne by enterprises are negatively correlated with the number of employment.The results of full sample regression and robustness test proved the reliability of negative significant correlation.According to the type of ownership,the reaction degree of private enterprises in the face of exogenous tax reduction policy is stronger than that of stateowned enterprises and foreign-funded enterprises;according to the industrial type of enterprises,no matter what type of industry it is,the social insurance premiums borne by enterprises have an inhibitory effect on the number of employment.Reducing the comprehensive tax burden rate of enterprises can only significantly increase the number of employment in technology-intensive industries.(2)The effective tax rates of enterprise income tax and turnover tax are only significantly negatively correlated with the employment scale of technology-intensive industries.It has a negative correlation with labor-intensive industries,but it is not significant.For capital-intensive industries,the effective tax rates of corporate income tax and turnover tax are positively correlated with the number of employment.(3)There is a significant positive correlation between VAT and social security charges and informal employment.Reducing the VAT tax burden and social security burden helps to improve the employment quality,while the corporate income tax has no obvious effect on the employment quality.Therefore,this paper proposes the optimization path of tax and fee reduction policy to further promote employment.In the future,we need to further promote the policy of reducing taxes and fees,and stabilize employment by stabilizing enterprises.However,we should beware of the crowding-out effect of reducing taxes and fees on employment and expand the beneficiaries of tax policies.To ensure the long-term stability of tax policy and stabilize the medium-and long-term expectations of private enterprises and small and medium-sized enterprises,we should focus on high-quality employment.