Tax Policy To Exand Consumer Demand Consumer Demand Of Residents

In in the outline of the12th five-year plan for national economic and social development and the report of the18th session of the National People’s Congress, our country point out that we should firmly grasp the strategic basis points of boosting domestic demand, speed up to establish a long-term mechanism to expand consumer demand, and release the residents’ consumption potential. Therefore, expanding domestic demand and promoting consumption will continue to be an important tool for a period of time to achieve steady economic growth. Tax policy plays an important role in terms of resource allocation, income distribution and stable economy, especially in promoting demand and improving the ability of consumption, etc. A reasonable tax burden and taxation system can enhance residents’ consumption ability and the willingness to spend, stabilize consumer expectations, and optimize consumption environment. In addition, the cooperation between different tax policies can highlight consumption focal point and hot spots, promote a rational and healthy development of the consumer market structure. Therefore, it’s very necessary to study and discuss the influence of the tax policy to consumer demand, and inspect the effect of the existing tax policy has been play in expanding consumer demand, which is helpful to make more reasonable and perfect the tax system structure, and promote consumer demand to the greatest extent.First of all, reviewing the studies that tax promotes residents’ consumption at home and abroad by collecting data and reading classic literature, and introducing the development of the theory of western consumer demand in three stages. On this basis, analyzing tax policy influence the mechanism of action of consumption from the consumption ability, consuming willingness, and consumer expectations and consumption environment, and making a comprehensive analysis of the differential impact on the residents’ consumption from the turnover tax, income tax and property tax. Second, reviewing and commenting briefly the tax policy of expanding consumer demand after1994, then, making descriptive analysis from multi-angle, multi-level in the face of the present condition of the tax structure and consumption in China using the data and charts, in order to find out the cause of the insufficient consumption as well as the difficulties existing in the current tax policy. Third, the empirical analysis uses the state space form of variable parameter model and selects of the tax revenue data and the urban residents consumption expenditure data in1994-2012in China, at the same time, introduce two variables, disposable income and consumption habits, which have important effects on consumer demand. Then analyze our country’s tax policy dynamic effect on urban residents’ consumption demand in two aspects, total tax revenue and tax structure, get the dynamic effect rendering and analyzes the empirical results. Finally, according to the theoretical analysis and empirical analysis in this article, it puts forward tax policy suggestions to establish long-term effective mechanism of expanding consumer demand, expand urban and rural residents’ consumption demand, such as optimize the tax system and policy, enlarge the scope of the VAT and reduce the tax burden, improve the system of tax and emphasize on the main point of tax incentives, and focusing on enhancing the farmers’ consumption ability.