The Impact Of Tax Burden On Employment Accommodation Of Small And Medium-sized Enterprises

China’s economic development cannot be separated from the creativity of small and medium-sized enterprises,which is the source of expanding employment channels and realizing mass innovation,plays a key role in realizing the medium-high growth of China’s economy,and is the backbone of reducing unemployment rate and stabilizing social employment.By the end of 2018,China has more than 30 million small and medium-sized enterprises,the contribution to the national tax revenue and GDP is far more than other enterprises,and nearly 80 percent of the technological innovation and labor force employment are created by small and medium-sized enterprises.To alleviate the pressure of employment,there must be no lack of help from small and medium-sized enterprises.However,due to their inherent defects,the development of small and medium-sized enterprises pressure,walking hard.The first pressure comes from the heavy tax burden imposed by the state.In order to explore how and to what extent the employment inclusion of SMEs is affected by the tax burden,this paper uses the panel data of 384 SMEs listed companies from 2010 to 2018 to empirically test the impact of the tax burden on the number of employees and wages of SMEs.The results show that within the sample interval,the overall tax burden has a negative effect on the number of employees and wages of small and medium-sized enterprises.For each increase of the overall tax burden by 1 unit,the number of employees in small and medium-sized enterprises will decrease by 2.434%,and the wages of employees will decrease by2.009%.The burden of social insurance has a negative impact on the wages of employees in small and medium-sized enterprises,but the impact on the number of employees is not great.For every 1 unit increase in the burden of social insurance,the wages of employees in small and medium-sized enterprises will decrease by0.004%.It is found that due to the special structure of tax system in China,the tax burden of turnover tax is stronger than the tax burden of income tax in inhibiting employment inclusion of small and medium-sized enterprises.In addition,the paper also conducts a group test for heterogeneous SMEs,and explores the impact of tax burden on employment inclusion of different types of SMEs from two aspects: region and industry nature.Specifically,the negative impact of tax burden on the number of employees of SMEs in eastern China is greater than that in central and western China.The negative impact of the tax burden on the wages of SMEs in the central and western regions is greater than that in the eastern regions.The negative impact of the tax burden on the number of workers and wages of non-manufacturing SMEs is greater than that of manufacturing SMEs.Therefore,in order to solve the social unemployment problem under the economic trauma caused by the COVID-10,we must strengthen the support for stabilizing posts and reduce the tax burden of small and medium-sized enterprises.