A Study On The Employment Promotion Effect Of Tax And Fee Reduction Policies

Employment is one of the most foundational part of people’s livelihood,and a full solution to the employment problem is related to a country’s long-term economic prosperity and social stability.Item 1 of the 2022 government work report points out that the “six stability” and “six guarantees” will continue to be done well,strengthen the employment priority policy,constantly update the macroeconomic policy system,and ensure the smooth realization of the policy goals centered on full employment.Fiscal,tax,financial and other policy measures should give priority to employment orientation,and solidly promote employment stability and job expansion.Right now,we’re not just facing the employment problem at the aggregate level,but the structural level that needs to be solved urgently.Factors such as the domestic economic downturn,the new crown pneumonia epidemic,and the changing international situation all affect my country’s high-level full employment.Whether in theory or practice,it has been concluded that full employment cannot be achieved entirely by market mechanisms,so macroeconomic policies should play a strong regulatory role at this time.Fiscal and taxation policy is one of the important starting points of macroeconomic policy,and taxation policy is the mainstay of fiscal and taxation policy.Therefore,we must go all out to make good use of fiscal and taxation policy means in a timely manner to achieve the goal of full employment policy.As an important tax policy force in recent years,"tax reduction and fee reduction" was first proposed in 2018,but retrospectively,the reduction and exemption of taxation and administrative fees belong to this policy system.It remains to be seen what impact the "tax and fee reduction" policy will have on the job market.And is there room for improvement in the process of policy making?Based on the relevant theoretical analysis of the tax employment effect,this paper puts forward the hypothesis: the tax and fee reduction policy has a significant positive impact on the employment level;the tax reduction and fee reduction policy has a more significant effect on promoting employment in the central and western regions of my country.According to the provincial panel data of 29 provinces,municipalities and autonomous regions in my country from 2011 to 2020,seven important indicators are selected: the explained variable is the employment participation rate,the explanatory variable is the level of taxes and fees,and the control variables are the regional economic development level,regional economic development level,and regional economic development level.The degree of opening to the outside world,the structure of the tertiary industry,the level of regional education and the scale of regional financial expenditures,in order to build a more comprehensive panel data model.In the empirical analysis,a simple regression of panel data is performed first.The preliminary regression results show that there may be missing variables in the model,which may be unobservable institutional factors that change over time.In the following,we will use the time fixed effect model to continue testing to determine whether there is a correlation between tax burden and employment level.The empirical results show that the level of taxes and fees has a significant negative correlation with the employment participation rate,just the policy of reducing taxes and fees can have a positive impact on employment to a certain extent.Continuing to carry out the heterogeneity test,the results show that the tax and fee reduction policies have shown a significant role in promoting employment in the central and western regions.Combined with the conclusions drawn from empirical analysis,this paper puts forward the following suggestions for tax and fee reduction policies: first,increase the intensity of tax and fee reduction policies,including continuing to promote tax and fee reduction policies,expanding the scope of application for special groups and increasing policy time limits,strengthening systematic;second,increase investment in education,improve structural unemployment,and optimize industrial structure;third,increase policy preference for the western region.The innovative attempt of this paper: First,many scholars focus on the two aspects of corporate income tax and personal income tax.Considering the spillover effect of specific tax policies,a comprehensive analysis of a series of policies is carried out multi-angle factors,try to build a more comprehensive index system,so that the analysis results are more realistic.There are many deficiencies in this article: First,in terms of the time dimension of data,due to the limited data resources I have,the latest indicator data is only updated to 2020,and the timeliness of the data is slightly lacking.Secondly,in the conclusions and suggestions,other macroeconomic factors affecting employment.The economic policy has not been systematically considered,and the comprehensiveness and rigor need to be improved.