Analysis Of The Effect Of Corporate Income Tax Preferential Policies On Employment

For a long time,employment has been the focus of attention of governments and the people of all countries,and it is related to the economic growth and social stability of a country.The 18 th National Congress of the Communist Party of China regards "full employment" and "higher quality of employment" as important goals for building a well-off society in an all-round way,with the aim of fully ensuring the stability of China's social employment.Especially under the current economic downturn,the pressure on total employment remains high,structural contradictions are more prominent,and more new factors are increasing.In short,the employment situation in China is still very grim.Relevant theories and practices at home and abroad have fully proved that the employment problem cannot be solved fundamentally by relying only on market mechanisms.Tax policies,as an important part of macroeconomic policies,are important to maintain social stability,promote economic growth,optimize industrial structure,and promote Employment plays an irreplaceable role.Especially as a direct tax on corporate income tax,the level of its tax burden will directly affect the after-tax profit level of the enterprise,and then affect the demand for labor of the enterprise.Since the 21 st century,China has implemented a series of preferential corporate income tax policies in promoting employment and has achieved certain results.However,whether the employment effect of the preferential corporate income tax policy is fully exerted and whether there are problems with the current policy needs to be improved needs further verification.In view of this,based on the current employment situation in China,this article leads to the theoretical and practical significance of studying the employment effect of preferential corporate income tax policies.Firstly,this article starts from the concept of employment and unemployment,first briefly summarizes the western tax and employment-related theories,and then analyzes the employment effect of taxes on this basis,and draws the conclusion that corporate income tax mainly affects labor demand,which is a preferential policy for corporate income tax The mechanism of influence on labor demand lays a theoretical foundation.After analysis,it is found that the preferential corporate income tax policy can affect the marginal cost of the enterprise and the relative prices of the capital and labor factors required for production,and then produce a scale effect and a substitution effect.The final policy effect depends on the net effect of the two effects.Secondly,this article analyzes the current employment situation in China,and finds that the pressure on total employment has begun to shift to stock,structural contradictions are more prominent,and the employment structure of the industry is seriously unbalanced.From the perspective of policy practice,classify and analyze the preferential corporate income tax policies that have been implemented in China since the 21 st century,and summarize them from the perspectives of special employment groups,small and small profit enterprises,and high-tech enterprises.There are the following shortcomings: first,the lack of long-term effectiveness of the policy period;second,the lack of comprehensiveness of the beneficiaries;third,the neglect of the improvement of the quality of workers;and fourth,the lack of industrial structure orientation.Thirdly,on the basis of theoretical analysis and current situation analysis,this article makes an empirical test on the employment effects of China's preferential corporate income tax policies,and lays the foundation for the follow-up policy evaluation and suggestions.In the empirical analysis,considering that the current employment level will be affected by the previous employment level,coupled with the two-way causality between corporate income tax and employment,this paper uses a systematic generalized moment estimation method on the basis of a dynamic panel data model.The employment effect of the preferential corporate income tax policy was tested,and the results showed that there was a negative correlation between the corporate income tax burden and employment.In order to more objectively evaluate whether the current corporate income tax preferential policies fully exert the employment effect,the average level of OECD countries is introduced as a comparison,and it is found that the level of corporate income tax burden in China is much higher than the average tax burden of OECD countries.Corporate income tax burden has become a key factor restricting the development of China's enterprises,and it is urgent to adjust and improve the current preferential policies for corporate income tax.Finally,in order to give full play to the employment effects of preferential corporate income tax policies,combined with China's current employment status and empirical analysis,this article proposes that our corporate income tax preferential policies should be improved in the following aspects: First,adjust and improve the current corporate income tax incentives.Policies include expanding the scope of tax preferential policies and appropriately extending the duration of tax preferential policies;second,promoting economic development and optimizing the industrial structure,including prioritizing the development of the tertiary industry and promoting the development of small and micro enterprises;third,improving the quality of the labor force and improving the structure employment contradictions.