Analysis Of The Effect Of Effective Tax Rate On Economic Growth In Jilin Province

Taxation is closely related to the national economy and people's livelihood.Along with China's fiscal and taxation system deepen reform,the role of taxation in economic development is becoming more and more important.In the theoretical study of tax economic effects,the relationship between tax structure and economic growth is particularly important.Compared with macro tax burden indicators,the tax structure defined from the perspectives of the effective tax rate on capital,labor and consumption can better reflect tax burden on economic growth.As an important old industrial base,Jilin Province has experienced problems such as a decline in economic growth rate,an excessive investment rate,and serious population loss in recent years.Relevant scholars believe that the effective tax rate is an important indicator to measure the regional tax burden and economic development.The high effective tax rate on capital will lead to capital outflow.The high effective tax rate on labor is not conducive to retaining talents.The high effective tax rate on consumption will increase the burden on consumers.Therefore,scientifically grasping the structural characteristics of effective tax rate in Jilin Province and dynamically analyzing the structural impact of effective tax rate on economic growth can provide a reference for the government to formulate reasonable tax policies and economic growth targets.From the perspective of effective tax rate,this paper firstly re-processes and apportions part of taxes based on the research of domestic and foreign scholars and the current tax policy,and redefines the scope of accounting for effective tax rate.Secondly,re-calculate the effective tax rate of Jilin Province from 1994 to 2016,and summarize the fluctuation trends of effective tax rate.Analyze the characteristics of effective tax rate structure in Jilin Province.By comparing with the effective tax rate of developed countries,grasp the overall level of the effective tax rate of Jilin Province.Thirdly,based on the theory of tax structure affecting economic growth and the endogenous growth theory,analyze the path of effective tax rate affecting economic growth.On this basis,select the GDP growth rate and investment rate as indicators to measure regional economic growth,and establish the third-order economic growth VAR model and investment VAR model respectively.Further,based on the economic theory,impose the short-term constraints on the variable matrix to obtain the economy.Establish the SVAR model and use the structural factor decomposition method to make the effective tax rate as the impact variable respond to the impulse,and realize the dynamic structural impact of the effective tax rate on the economic growth and investment activities of Jilin Province.Combined analysis,the paper draws the following conclusions: First,the effective tax rate on capital income in Jilin Province is low,increasing the effective tax rate on capital income will increase the investment cost of enterprises,which is not conducive to economic growth.Second,the effective tax rate on labor income is high,and the labor continues to rise.The effective tax rate leads to the outflow of labor to the relatively developed regions of the economy,which is not conducive to economic growth.Third,the effective tax rate on onsumption is high.Increasing the tax rate will make residents tend to increase savings and working in the short term,which is conducive to economic growth.Fourth,due to the difference in the structure of the tax system,the structure of the effective tax rate in Jilin Province is different from developed countries.Based on the conclusions,the paper put forward the following suggestions: First,build a good investment environment and effectively reduce corporate tax burden;secondly,levy social security tax in a timely manner to protect the rights of workers;third,stimulate consumer demand and release tax reform dividends.