An Theoretical And Empirical Analysis Of Work-division Promoted By The Tax Reform

The tax reform that China's business tax was replaced by value-added tax(VAT)firstly began in Shanghai,and gradually developed in other provinces.No matter the original taxpayers of VAT or the new taxpayers impacted by this tax reform,they were all influenced by the new tax policy in different degrees.Through the analysis of the operation in pilot areas,it showed that this tax reform was of great significance to the transformation of the economic development,especially modern service industries.The tax reform was not only conducive to the promotion of structural tax-reducing policy,but also it promoted China's economic restructure.This tax reform kept peace with times,and gradually satisfied with international standard.As an important branch of the service industry-the productive service industries,it,on the one hand,can promote the development of our market economy healthier and more orderly;on the other hand,it also plays a vital role in maintaining the fairness of the economic subjects by the provision of specialized services for the subjects of social economy.Productive service industries have also been included,studying the effect on these industries by the new tax reform is essential to keep China's economy stable and to upgrade industries.Before the new tax reform,duplication of taxes increased transaction costs of enterprises,and inhibited their enthusiasm and innovation,hindering the transformation and upgrading of industries.After that,the tax reform not only reduced the burden on taxpayers,but also effectively solved the problems of repeated taxation.The tax reform played an important role in promoting division of work,improving the VAT deductive projects and strengthening the integration of second and third industries.Based on the empirical analysis,explain the impact of work division by the new tax reform,and provide some relevant political with the present situation of industry development.This paper includes five parts.The first chapter mainly introduces the background of the reform,the significance of research,foreign and domestic literature review about VAT,research methods and ideas of this paper.The second chapter introduces the concept of the productive service industries,their tax policy and the influence of work division by business tax replaced by AVT.The third chapter introduces the theory of work division,the mechanism of promoting specialized division of work by this tax reform,and how to evaluate them.The fourth chapter uses the difference-in-difference model(DID model)to test the effect ofwork division on productive service industries from the empirical point of view.In the fifth chapter,combined with the above theoretical analysis andempirical results,I put forward some relevant suggestions on the existing problems of the division of work in productive service industries.In this paper,I chose productive service industries as the object of study,and tested two mechanisms of work-division by the new tax reform with DID model.It proved that the operating income of verification and consulting industries had increased after the tax change;the scope of business operation of manufacturing industries had grown significantly compared with original scope.Finally,I put forward some relevant suggestions based on the problems existed in the promotion of work-division by the tax change.