Research On The Influence Of Individual Income Tax On Scientific And Technological Innovation

At present,China is at the historical juncture of a new round of scientific and technological revolution and industrial revolution in the world.Under the demand of accelerating the construction of a new development pattern,the country firmly takes scientific and technological innovation as the first driving force for development.Scientific and technological innovation depends on individuals in the final analysis.Scientific and technological personnel are the key to scientific and technological innovation and also the embodiment of a country’s comprehensive competitiveness.As a direct tax,personal income tax not only directly affects a country’s ability to attract scientific and technological talents,but also can guide more people to participate in scientific and technological innovation,stimulate the vitality of social innovation and promote the development of science and technology by adjusting the level of personal income.Therefore,in the face of increasingly fierce international competition in science and technology,it is of great significance to study the impact of personal income tax on scientific and technological innovation,and put forward corresponding solutions to the problems existing in the current tax policy.This thesis first analyzes the theoretical basis and function path of the impact of personal income tax on technological innovation from the theoretical level.Then it combs out the policy support of individual income tax for scientific and technological innovation,and finds out its areas for improvement.On this basis,this thesis selects the panel data of 31 provinces and cities in China from 2012 to 2021,and uses the fixed effect model to study the impact of individual income tax burden on technological innovation.The research findings are as follows: First,increasing the personal income tax burden will inhibit technological innovation;Second,there are differences in the impact of individual income tax burden structure on scientific and technological innovation;Third,the personal income tax burden will affect human capital and then affect technological innovation.Based on the above empirical conclusions,this thesis proposes specific policy recommendations from three aspects: first,optimize the comprehensive income tax rate structure,and reduce the maximum marginal tax rate of labor income;Second,increase the deduction of expenses and improve the level of human capital;Third,we will increase tax incentives for scientific and technological innovation labor and capital income.Based on the research of scholars,this thesis further enriched the research on the relationship between personal income tax,technological innovation,and human capital,and the conclusions obtained provide theoretical guidance for the improvement of China’s personal income tax policies to promote technological innovation.