An Empirical Study Of The Impact Of Income Tax Administration On Employment In China

The current downward pressure on the economy continues to increase,and the rate of economic development has slowed markedly.In China's deepening supply-side structural reforms,under the policy of “going capacity and destocking”,traditional high-energy-consumption and high-pollution enterprises have been shut down and upgraded,resulting in a large number of unemployed people,and employment problems are becoming increasingly serious.Judging from the practice and experience of market economy development in developed countries,the market economy has limitations and failures in solving employment problems.Fully relying on market mechanisms cannot achieve full employment.To solve the employment problem,it is necessary to give full play to the main position of the market economy while the government conducts macroeconomic regulation and control.The income tax policy is one of the tools of the government's macro-control.From a theoretical point of view,income tax policies will affect labor supply and demand;from the perspective of real policies,in recent years China has introduced some income tax policies to promote employment.In the context of the current slowdown in economic development,has the income tax policy promoted employment and whether the implementation effect has reached expectations? Further empirical testing is required.Therefore,this paper uses empirical data from China to empirically analyze the impact of income tax policies on employment.Based on the theoretical analysis,this paper empirically analyzes the impact of income tax on employment from the micro and macro levels.Firstly,based on the theoretical analysis of the impact of income tax on employment,the paper analyzes the impact of income tax on labor supply and labor demand.Secondly,it sorts out China's relevant income tax policy and analyzes the current employment situation in China,laying the foundation for empirical analysis and summarizing the problems of income tax in promoting employment.Thirdly,using the panel data from the micro level to empirically analyze the impact of China's income tax on labor supply and labor demand.From the macro level,using panel data,empirically examine the relationship between income tax,economic growth,and employment.It is concluded that: first,China's personal income tax has a negative impact on labor supply;second,corporate income tax and labor demand are also negatively correlated;third,economic growth will significantly affect income tax,income tax also has an impact on employment,three People are mutually influential relationships.Finally,based on the combination of the status quo and the empirical results,this paper points out the shortcomings of the current employment income tax policy and proposes an income tax policy to promote employment.