A Study On The Employment Effect Of The Tax Burden In Guangdong Province

The report of the 19th National Congress of the Communist Party of China clearly stated that "employment is the greatest livelihood of the people".At present,China is going through a period of changes in economic transformation and upgrading,which is affected by the adjustment of industrial structure and the sluggish global economic development.The employment situation in China is relatively severe,and the problem of structural employment is becoming more and more prominent.The goal of high-quality economic development in the new era is to achieve more full employment,and high-quality employment is also the concern and demand of people’s lives.As the main tool of the government’s macroeconomic regulation and control,taxation plays an important role in adjusting income distribution,stimulating economic development,transforming industrial structure,achieving stable employment and ensuring social harmony.As a province with a large economy and population,Guangdong Province has developed rapidly in recent years and has relatively many employment opportunities.Studying the impact of Guangdong’s tax burden on employment effects is conducive to the discovery and resolution of employment problems.This paper first summarizes the research conclusions of domestic and foreign literatures on the effect of taxation on employment,and then analyzes the employment effect of tax burden in Guangdong Province on this basis.From the theoretical level,the influence mechanism of the overall tax burden and the three tax burdens on the employment effect is discussed.Secondly,according to the relevant data of Guangdong Province’s taxation and employment population,it analyzes the overall tax burden,as well as the relationship between value-added tax,corporate income tax and personal income tax and the employment scale and employment structure of Guangdong Province and its development status.Then carry out an empirical study on the tax burden and employment effect,use panel data,conduct regression analysis on the overall tax burden and employment growth in Guangdong Province,and conclude that the overall tax burden has a long-term negative effect on employment growth,and then use the VAR model to analyze the value-added tax.The specific impact of negative,corporate income tax,and personal income tax on employment.The empirical result is that the value-added tax burden has a short-term promotion effect on employment,and will hinder employment development in the long run.The corporate income tax burden has always had a negative effect on employment.,the personal income tax burden has the effect of short-term promotion and long-term inhibition on employment.Finally,according to the empirical conclusions,it proposes to optimize the employment tax policy,improve the value-added tax policy,expand the preferential scope of corporate income tax,adjust the personal income tax and other tax policy suggestions to promote the development of employment in Guangdong Province.