Research On Tax Policy To Promote Residents’ Consumption Under The Background Of International And Domestic Dual Circulation

Since the reform and opening up,China’s overall economic structure has undergone major changes after more than 30 years of continuous rapid growth,basically ending the era of "shortage economy".The economic growth model has shifted from a supply-constrained type to a demand-constrained type.The three major factors of investment and exports are important forces driving China’s rapid economic growth.In the past,my country’s economic growth was mainly driven by exports and investment.In recent years,China-US trade frictions and the globalization of the new crown epidemic have put my country’s external economic situation facing severe tests.At the same time,the domestic investment market has become saturated.Relying on exports and investment to pull,expanding domestic demand is the lasting driving force for maintaining China’s economic growth.In response to major changes unseen in a century,the Party Central Committee put forward a major decision to "accelerate the formation of a new development pattern with domestic and international cycles as the main body".The core of the decision is to give full play to the advantages of the domestic super-large market and the potential of domestic demand.Maintaining healthy and sound development of domestic consumer consumption is the prerequisite and guarantee for advancing the dual cycle.As an important tool for the state to participate in the distribution of social income,taxation plays an important role in promoting demand and increasing consumption.A reasonable tax structure and tax burden can increase residents’ disposable income,increase residents’ consumption ability and willingness,stimulate residents’ consumption potential,and make important contributions to the realization of domestic and international double cycles.This paper first analyzes the important role of promoting resident consumption in the formation of a new development pattern,and then analyzes the relevant consumption theory,revealing that tax policies can have an impact on resident consumption through income,substitution and price effects,and the main tax will also have an impact on resident consumption,and then use the dynamic panel data of 31 provinces and cities in China from 1998 to 2019 for a total of 22 years to conduct an empirical analysis of the relationship between the tax system structure and tax burden and resident consumption,and test the degree of impact of tax on consumption.The results show that the tax structure and excessive tax burden based on turnover tax are not conducive to residents’ expansion of consumption;Again,a brief analysis of the consumption status quo and tax status of Chinese residents was made;Finally,based on the theoretical and empirical analysis results,the tax policy suggestions for promoting residents’ consumption are proposed.