Theoretical And Empirical Analysis Of China's Non-formal Employment Tax Policy

Informal employment consists of employment of informal sectors and informal employment of formal sectors.It has become the main employment channel and newly-increased source of employment of most developing countries, and the employment development trend of developed countries at the same time. Tax, as one of government's important macroeconomics adjustment means, will exert an influence on informal employment naturally.The specific feature of this paper is that it first analyzes the relationship between informal employment and tax policies.And take some econometrics means,such as ols estimate,etc.The conclusions drawn by analysis can be shown as follows:1.The necessity of the development of informal employment.The employment situation of our country is severe, the main reason can be shown as : supply exceeding demand, structural unemployment etc.For the sake of the increasing labour force and their low quality,we can't rely more on formal employment. In China, the informal employment rate is increasing year by year.And it has become the main employment form of our country.2.The main features and the development obstacles of informal employment. The main features of informal employment can be described as:unbalanced development of different regions, low quality of informal employers and employees,etc..And there are also some obstacles in the development of informal employment, for instance, fund obstacle, security obstacle, human resources obstacle and policy obstacle ,etc.3.The influence of tax policies on informal employment.This text draws support from the foreign research approach, and has carried on a positive analysis with the relationship between tax policies and informal employment. The result indicates, in order to encourage the development of informal employment,our country should reduce the tax burden of the persons choosing informal employment properly,but not weaken the intensity of tax regulation.4.The flaws and the improvement of tax policies related to informal employment. At present,our country has already set out many tax expenditure policiesrelated to informal employment, but still there are a great deal of drawbacks in the present policies, for instance, the heavy tax burden of labors of informal employment, imperfect aspects of the existing tax items , lack of some tax items,etc..Therefore, in order to promote the benign development of informal employment of our country, we should optimize the current policies,such as,perfecting the current tax items, levying the new tax items as soon as possible, making the tax expenditure policies inclined to the informal employment, and meanwhile,strengthening tax management ,etc.