Research On The Impact Of My Country's Corporate Income Tax Policy On Employmen

Employment is the biggest livelihood,and the barometer of economic development.The domestic and international economic situation is quite complex: the sluggish global trade development and the de-capacity reform of domestic economy have caused many enterprises and factories to close down,and many employees lost their jobs;Then,China has suffered great impact from COVID-19.These multiple factors have made China under huge employment scale and structural pressure.In this case,the Chinese government has emphasized the primacy of employment in the economy and society,and it is necessary to take more positive and favorable measures to promote employment.The key to employment lies in enterprises.China has issued a series of employment-related preferential corporate income tax policies,but the specific effects are still to be verified.Therefore,this article tries to verify the impact of corporate income tax reduction and exemption on employment scale and skill structure through empirical research,and find out the current policy problems and optimization direction on this basis,which has important theoretical and practical significance to solve social employment problems.The references related to corporate income tax and employment are sorted out to clarify the content to be studied.After that,the related concepts,such as the employment structure are defined,and another theoretical part finds that the corporate income tax policy affects the scale of employment by expanding the scale of income and changing the production factor cost,and affects the employment structure by reducing the cost of human investment,promoting industrial upgrading and the synergistic change of capital and technology upgrading.Then,the current situation of employment scale and structure in China is analyzed,finding that employment population and employment rate are continuously declining,the labor force potential is insufficient,and the overall employment skills level is still at a low level.And from both direct and indirect perspectives,the current corporate income tax policies to promote employment are summarized.On this basis,the article conducts an empirical test.Firstly,the hypothesis that the reduction of the corporate income tax burden can increase the total employment scale and the proportion of skilled personnel is raised.Then,a fixed effect model is established,based on the panel data of Chinese listed companies from 2009 to 2019.Both the underlying regression model and the robustness test results confirmed the hypothesis.Besides,the results of the mechanism analysis confirm that the corporate income tax reduction can play a positive role in the employment of enterprises by increasing human investment and expanding R&D investment.However,not all companies are positively affected: the reduction in the real tax burden only has a significant positive impact on the employee scale expansion of technology-and capital-intensive companies,while the employment demand of other companies is not significantly affected.The proportion of skilled personnel in technology-and resourceintensive enterprises is significantly increased.But the skill structure of labor-and capital-intensive enterprises is negatively optimized.In addition,the employment scale and skill structure of enterprises with different property rights are positively affected by tax reduction,and the tax sensitivity of non-state-owned enterprises is higher.The problems with the current corporate income tax policy to promote employment are as follows: first,the overall employment orientation of the policy is insufficient;Second,the preferential intensity related to human investment is not sufficient;Third,the scope of the policy targeting the employed population is not comprehensive;Fourth,the tax incentives for small and low-profit enterprises are inherently limited;Fifth,there is a lack of systematic design and convenience.In order to promote the improvement of the overall employment scale and the optimization of the skill structure,the following targeted suggestions are made.Combining the research results and taxation principles,the principles of the overall policies should be employment-oriented and take into account fairness and efficiency.Specific suggestions for improvement are as follows: first,continue to guarantee and develop corporate income tax incentives for technological innovation;Second,expand the intensity and scope of tax incentives for the education and training costs of employees;Third,the overall design of tax incentives for employment groups is necessary;What is more,other preferential policies for employment can be set to make up for the limitations of current policies.