The Impact Of The Tax Burden On The Ability Of SMEs To Absorb Employment

With the sudden outbreak of the epidemic in early 2020,"employment is difficult and difficult to find employment" has once again become one of the key concerns of the whole country.As the capillaries of my country’s economy,SMEs(small and medium-sized enterprises)play a very key role in promoting economic growth,expanding and stabilizing employment.However,the development environment for SMEs is still relatively difficult,and many SMEs are faced with problems such as tax burden and financing difficulties,which are not conducive to stimulating the huge potential of SMEs in "stabilizing employment".On account of this,on the basis of sorting out relevant domestic and foreign literature,this thesis explores the relationship between corporate tax burden and the ability of SMEs to absorb employment.First of all,this thesis makes a theoretical analysis of the relationship between taxation and the ability of enterprises to absorb employment from two aspects of enterprise partial equilibrium and mathematical model.Secondly,this thesis analyzes the development status and tax burden of SMEs in my country,and analyzes the employment contribution of SMEs.Meanwhile,on the basis of the analysis of the relationship between the overall tax burden of enterprises and their own ability to absorb employment,this thesis divides the sample enterprises into different groups based on tax types,industries and regions,and further discusses the relationship between the tax burden of enterprises in different groups and their ability to absorb employment.Thirdly,this thesis selects the financial data and employment data of the NEEQ(National Equities Exchange and Quotations)companies from 2014 to 2018,takes the corporate tax burden as the core explanatory variable,and the enterprise’s own ability to absorb employment as the explained variable for GMM regression analysis.The research results show that the tax burden has a significant negative impact on enterprises’ own ability to absorb employment,and the ability of enterprises to absorb employment in the previous year has a significant lagging effect on the ability to absorb employment in this year.In order to ensure the reliability of the benchmark regression results,this thesis re-regresses by replacing the explanatory variable measurement method and the core control variable,and the regression results are basically the same as the benchmark regression results,to verify the robustness of empirical results.Further explore the impact mechanism of tax burden on the ability of enterprises to absorb employment,and find that tax burden can affect the ability of SMEs to absorb employment by affecting the financing constraints faced by SMEs.In addition,there is a certain heterogeneity in the impact of corporate tax burden on employment absorption.In terms of tax types,changes in turnover tax burden have a greater impact on enterprises’ ability to absorb employment than changes in income tax burden;In terms of different industries,changes in the tax burden of labor-intensive enterprises have a greater impact on enterprises’ ability to absorb employment than changes in the tax burden of capital-intensive enterprises;In terms of different regions,changes in the tax burden of enterprises located in coastal areas have a greater impact on enterprises’ ability to absorb employment than changes in enterprises located in inland areas.At last,according to the above research conclusions,this thesis puts forward relevant suggestions to improve the tax burden of SMEs and improve the ability of SMEs to absorb employment from the two levels of government and enterprises,hoping that can provide a few ideas for enhancing the ability of SMEs to absorb employment.