Research On Employment Effect Of Tax Reduction Policy In Small And Medium-sized Enterprises

At present,the domestic and foreign economic development situation is grim and complex,the job market is inevitably affected by the economic situation and encounter difficulties.Employment is the foundation of people’s livelihood,and it plays a pivotal role in ensuring people’s production and livelihood and maintaining social stability.Therefore,the CPC Central Committee attaches great importance to solving the problem of people’s employment,puts employment in the strategic height of the overall development of the country,and emphasizes the importance of employment on many occasions at major meetings.It also takes "stabilizing employment" and "stabilizing market players" as the first of the "six stability and six guarantees" work,trying to ensure the stable and healthy development of the job market.It is worth noting that small and medium-sized enterprises are large in number,involve a wide range of industries,and have great potential for development.They are the main force of job creation and play an important role in stabilizing employment.At the same time,the state has introduced a number of tax reduction policies for small and medium-sized enterprises.As an important tool for the state to regulate the macro-economy,tax reduction policies aim to promote the development of small and medium-sized enterprises by reducing their tax burden and better absorb jobs.Therefore,the main purpose of this paper is to explore the impact of tax reduction policy on the employment of small and medium-sized enterprises,and put forward policy suggestions to promote the employment of small and medium-sized enterprises.First of all,this paper systematically combs relevant literature at home and abroad,and finds that domestic and foreign scholars have conducted various studies on tax reduction policy and its impact on employment,and their views on the relationship between tax reduction policy and employment are different.At the same time,when studying the relationship between tax cut policy and employment,the A-share listed companies in Shanghai and Shenzhen are usually taken as the research object and tend to study the impact of A specific tax cut policy on employment level,and the overall effect of tax cut policy for small and medium-sized enterprises lacks systematic consideration.This paper makes an in-depth analysis of the above aspects,and integrates literature research,quantitative analysis and empirical analysis.Secondly,this paper provides theoretical support for this study by explaining the tax effect theory,Keynesian employment theory and supply-side employment theory,and then analyzes the influence mechanism of tax reduction policy on the employment of small and medium-sized enterprises,which lays the foundation for the empirical analysis in the following paper.Thirdly,after systematically sorting out the employment status of Chinese small and medium-sized enterprises and their tax reduction policies,we collected the annual report data of GEM listed companies from 2014 to 2021 through Guotai ’an database,and carried out empirical analysis on this basis.Based on Stata15.1 software,the time-industry two-way fixed effect model is used to study the impact of tax reduction policies on the employment of small and medium-sized enterprises.The research conclusion is that tax reduction policies have a positive incentive effect on the employment of small and medium-sized enterprises,that is,the smaller the overall tax burden rate of enterprises,the stronger the incentive effect on employment.Then,three methods of replacing core explanatory variables,lagging variables and shortening sample interval were used to test the robustness of empirical conclusions,which showed that the baseline regression results were reliable.In order to study whether the incentive effect of the tax cut policy on the employment of small and medium-sized enterprises is heterogeneous in terms of region,property right nature and industry,grouping regression is conducted respectively.The regression results show that the tax cut policy has a significant impact on the central and western regions,non-state-owned enterprises and manufacturing industry.Finally,based on the theoretical and empirical analysis results and the actual employment situation of small and medium-sized enterprises,this paper puts forward the following policy suggestions: increase the intensity of tax reduction for small and medium-sized enterprises,strengthen the preferential tax reduction policies for small and medium-sized enterprises,ease the financing constraints of small and medium-sized enterprises,optimize the tax collection and administration system of small and medium-sized enterprises,and encourage them to actively use tax reduction policies.It is hoped that the research of this paper can provide effective reference for tax reduction policies to stimulate the employment of small and medium-sized enterprises.