Study On The Influence Of Corporate Income Tax Burden On Manufacturing Employment

Employment is the foundation of people’s livelihood.It is not only an important Chinese people’s livelihood issue,but also the key to sustainable economic development.To ensure people’s livelihood and improve employment situation in our country,the country has also issued a series of policies to ease the pressure on employment.China is currently in a period of economic transition,with the impact of the COVID-19 pandemic and trade friction between China and the United States taking a toll on the country’s economy and employment.The manufacturing industry occupies an important position in our national economy,which provides a solid material foundation for the modern industrial society.Therefore,the government attaches great importance to the employment problem and emphasizes the need to support the development of the manufacturing industry and absorb part of the labor force.As a common means of national macro-control,tax policy contributes its own strength to national economic development and improvement of people’s livelihood.In particular,the tax burden of corporate income tax will affect corporate profits,thus affecting the demand for labor force.However,the effect of corporate income tax policy on employment in manufacturing industry is still uncertain,and whether there are differences in the effect of different regions,different sizes and different natures of enterprises on employment is also uncertain.Therefore,on the basis of expounding the theory of the employment effect of corporate income tax and analyzing the mechanism of employment,this paper explores the specific relationship between the tax burden of corporate income tax and employment through empirical methods,so as to provide empirical evidence for optimizing and implementing tax policies to promote employment,so as to relieve employment pressure.The theoretical part of this paper first defines the relevant concepts of tax burden and employment,expounds the relevant theories about employment,and then analyzes the mechanism of corporate income tax on employment based on the theory.Next,it analyzes the overall employment status and manufacturing employment status.Mainly from the employment number and employment structure of two aspects to elaborate.Through the analysis of our employment situation,we conclude that the total number of employment is decreasing constantly,and the manufacturing employment structure gradually presents the aging condition.Next,the preferential policies of enterprise income tax in China in recent years are sorted out,and finally the problems existing in the preferential policies of enterprise income tax in promoting employment are analyzed:first,the preferential policies of enterprise income tax are shorter;Second,the coverage of preferential policies for enterprise income tax is not wide enough;Third,the preferential policy of enterprise income tax does not pay attention to labor training;Fourth,the regional pertinence of preferential policies for enterprise income tax is weak.The empirical part of this paper selects the data of listed manufacturing companies from 2016 to 2021,collects and processes the data,uses the fixed effect model to verify the impact of tax burden on employment,and conducts a robustness test to avoid the interference of other events.And further take the financing constraints of enterprises as the intermediary variable to explore whether the corporate income tax affects employment through the impact of financing constraints;Based on the results of baseline regression,the heterogeneity of the impact of corporate income tax on employment is analyzed from the aspects of enterprise ownership,region and enterprise size.The empirical results show that there is a negative correlation between tax burden and employment growth rate,and indicate that the impact of corporate income tax on employment is partly generated by influencing financing constraints.The further heterogeneity analysis shows that the corporate income tax has a more significant impact on the employment of non-stateowned enterprises,but has no significant impact on state-owned enterprises.It is found that the employment effect of corporate income tax on large-scale enterprises is more obvious after the differentiation of enterprise scale.Finally,based on the analysis of empirical results,it puts forward corresponding policy suggestions to improve our corporate income tax policy,so as to better stimulate employment.