An Empirical Analysis Of The Impact Of China's Tax Policy On Residents' Consumption

For a long time,China has formed an economic growth model that emphasizes light consumption,heavy investment and exports.Faced with the complicated situation at home and abroad,this mode of economic growth driven by external demand is obviously unable to adapt to China's actual situation and restricts the development of China's economy.The "Thirteenth Five-Year Plan" of 2015 clearly states that on the basis of building a well-off society in an all-round way,it will maintain high-speed growth in the economy and increase the contribution of consumption to economic growth.At the same time,in order to cultivate new driving forces for development,it is committed to expanding consumption and expanding service consumption in order to promote the upgrading of consumption structure and give full play to the basic role of consumption.In September 2019,"Several Opinions on Promoting the Consumption System and Mechanism to Further Stimulate the Consumption Potential of Residents" emphasized that the mechanism for accelerating the improvement of the consumption system and accelerating the fundamental role of consumption in economic development will be enhanced.Obviously,increasing the consumption potential of residents is a guarantee for the sustainable and stable development of the economy.At the same time,it also shows that the basic role of consumption has gradually attracted the attention of the country and has been incorporated into the national strategic planning.As an important policy tool for the country to participate in the distribution of social products,taxation can indirectly affect residents 'consumption decisions by adjusting product prices and disposable income of residents.Therefore,using taxation tools to further stimulate residents' consumption potential is conducive to promoting China's current external demand-driven The economic model is transformed into a domestic demand-driven type.Therefore,in the current economic background that advocates structural tax reduction,how to optimize the taxation policies of turnover tax and income tax is a topic of practical significance to economic development.This article analyzes how the tax policy affects residents 'consumption through income and price channels,based on a review of related consumption theories.Second,it analyzes the status and problems of China's residents' consumption.Also,it use the VEC model to empirically analyze the impact of VAT,consumption tax,and personal income tax on residents' consumption demand.Finally,according to the structure of the empirical analysis,it puts forward suggestions for optimizing tax policies to promote household consumption.