Research On China’s Tax Policy Influenced By Lewis Turning Point

Accompany the development of social economy in our country inthe current years it emerges continuously that all sorts of "labor shortage"phenomenon comes, the shortage of labors covered technology and theaverage worker, even include a series of labor wage disputes, and so on.All of these lead to minimum wage standard rising of each area in thewhole country. People begin to pay more and more attention toeconomics term "Lewis inflection point", if our country experience Lewisinflection point or is to be welcomed Lewis inflection point, it is popularwith all of the attention what economic policy we should take whenLewis inflection point comes. In this context, this article try to analyze,from the angle of tax policy, how to adopt tax policy when our countryexperiences Lewis inflection point to respond to this stage, it will be avery good opportunity to our country economy transformation whenLewis inflection point comes, in order to make our country economicsociety going to a new stage.From the Lewis’ model in this chapters and sections, this paperintroduces "Lewis’ model", the notion is presented by Nobel economicprize winner Lewis in population flow model, the model try to analysisfor the point of view based on the classical economics in the course ofdevelopment of economic, in the dual economic composition, with the blossom of industrialization and urbanization, rural surplus labor transfersfrom the traditional agriculture department to a modern industrialdepartment. In this process, rural surplus labor from unlimited supply ofrural surplus into relative shortage of labor force. At the same time, laborsalary begins to rise; the must to raising wages can continue to recruit tomodern agriculture department of labor. At first, there is only one Lewisinflection point, labor market emerges a narrative of change, namely fromlabor unlimited supply in labor shortage of relative shortage stage.Yet, in touch with the real course of economic development, laborshifts in the fact is a long process of gradual transformation, to take thatinto account, Ranis and Fei put forward deepening Lewis’ model intoLewis-Ranis-Fei model,this model established surviving level of wagesand concealment the unemployment system and so on concepts, Lewismodel of the labor supply divided into the labor shortage of relativelyunlimited two stages is separated into unlimited labor supply, limitedsurplus labor force and a dual economic structure this three stages. Thusthe first Lewis inflection point and the second Lewis inflection point wereproposed. Because of Lewis second turning point is the commercial point,for traditional means agriculture departments and modern industrialdepartment, wages are decided by marginal productivity of labor, binaryeconomy disappears, it’s currently great gap between urban and rural regions in China. As a result, in related with the concrete economic statusthis paper studies the Lewis first inflection point.Towards many developing countries, the young labor of theproductionin the increased labor cheap labor provides relatively cheap price ofelements to economic progress, the traits in China’s present develop ofwhat way more apparent. China, as a big population, in the past for a longtime has been enjoying the peculiar population of the "demographicdividend", a large number of rural surplus labors, brings a lot of cheaplabor to China manufacturing industry, once it is China’s rapid economicgrowth power. When a country economy faces a Lewis inflection point,the past a lot of low cost labor no more, the " demographic dividend " isalso gradually dried up, at the same time in the past the way rely on cheaplabor force to drive the economy with the high-speed development of theextensive growth mode will have not suitable for a sustainable economicdevelopment, the labor wage should be improved, more and more goodemployment relationship would be given to workers, we must alter tointensive develop way.In the next portion, we want to represent the tax and the revenuepolicy, tax qualified as the nation’s main source of income, in changingthe way of promoting economic develop, it plays a very important role.Tax revenue is a macro-control economic lever, through the tax increases and tax cuts and so on ways to adjust to the economics interests of themembership in the society, in addition affect upon the economydevelopment.Afterwards, the presentation is the financial develop of our countryprogress and tax policy development course. As is known to all, theeconomic development of our country probably has three stages, thefounding of the stage, reform and unlocking moments and the regionseconomy cohered with blossom stage. In the process of change, taxpolicy is also constantly changing, fully embodies that the revenue policyplays the momentous role in accommodated with the economic.The next introduce mainly some developed countries and regions, byJapan, South Korea and Taiwan area as an example, take what economicpolicy when they experience Lewis turning point, more important is whattax policy they took, this paper summarizes the developed countries andregions in the experience of going to Lewis what tax policy in order togive our country enlighten and suggestions.In the last analyze the economic characteristic when one countryexperiences Lewis inflection point, and combine with the reality of thedevelopment condition in our country at present, and conclude that Chinais going to or are going through Lewis inflection point, a combination ofthese parts of Japan, South Korea and Taiwan’ tax policy in the experience of going to Lewis, and put forward the suitable tax policy forthe development of our country to pass the Lewis turning point progress.