Research On The Influence Of Tax Structure On Chinese Resident Consumption

The 14th Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the Outline of Vision 2035,voted by the National People’s Congress in March 2021,clearly states "to comprehensively promote consumption and enhance the fundamental role of consumption in economic development".While the contribution rate of consumption to economic growth has been increasing year by year,but the resident consumption,as an important component of consumption,still has some problems to be solved,such as slow growth of consumption scale and low consumption rate.As an important means of regulating residents’ consumption,taxation shoulders the important task of boosting residents’ consumption and promoting consumption upgrade.The regulating effect of taxation on residents’ consumption is mainly realized through the setting of tax types and their tax system elements and the adjustment of the tax system structure.Further improving the tax system and optimizing the structure of the tax system are conducive to promoting residents’ consumption and consolidating the basic role of consumption in economic development.This thesis firstly compares the domestic and foreign literature on the impact of tax structure on resident consumption.Secondly,it defines the concepts of tax structure and resident consumption,and briefly introduces the relevant theories of tax structure and consumption as well as the mechanism of the effect of tax structure on resident consumption.Then we analyze the current situation of China’s tax structure in terms of tax type structure,tax system structure,direct tax and indirect tax structure,and find that China’s tax structure has an unbalanced ratio of direct tax to indirect tax,a high proportion of VAT with regressive nature,a low proportion of personal income tax and consumption tax with income distribution function,and an imperfect property tax system,which are not conducive to promoting residents’ consumption.Then we continue to analyze the current situation of China’s residents’ consumption and find that there are currently problems such as slow growth rate of residents’ consumption scale,low residents’ consumption rate,and excessive disparity between urban and rural residents’ per capita consumption expenditure and different regions’ per capita consumption expenditure.Next,this thesis selects panel data of 30 provinces and cities except Tibet from 2007-2019,and uses the empirical analysis method to study the impact of tax structure on residents’ consumption from two aspects: tax system structure and tax type structure,and this thesis also uses the empirical analysis to the residents’ consumption effect of the tax structure in the eastern and Midwest regions of China.Finally,based on the previous conclusions,this thesis gives suggestions for optimizing the tax structure from the perspective of promoting residents’ consumption.The main conclusions of this thesis are: from the influence of tax system structure on residents’ consumption,transfer tax and income tax have a suppressive effect on residents’ consumption,while property tax can promote residents’ consumption,but only the influence of transfer tax on residents’ consumption passes the significance test;from the influence of tax type structure on residents’ consumption,VAT has a suppressive effect on residents’ consumption,while personal income tax can promote residents’ consumption,and the influence of VAT and personal income tax on residents’ consumption both pass the test at 1% significance level,but the moderating effect of consumption tax on residents’ consumption is limited and does not pass the significance test.