An Empirical Study On The Impact Of Tax Burden On Residents’ Consumption Level

China’s economic development has shifted from a stage of high-speed growth to a "new era" of high-quality development,and consumption has become the main driver of China’s economic growth.Household consumption is the main body of final consumption and one of the endogenous driving forces of GDP growth."Expanding domestic demand is the inevitable choice to support medium-high growth of China’s economy and the only way to meet people’s needs for a better life." Under the background of tax and fee reduction and "double-cycle",how to exert the adjustment effect of tax on residents’ consumption is very important.It has become an important goal of the tax system and policy reform to actively open up the consumer market,accelerate the construction of a new pattern of development with domestic circulation as the main body,and enhance the basic role of consumption in economic development.Therefore,based on the tax policy to promote the consumption of residents and effectively promote the high-quality developmUsing the panel data of 282 prefecture-level cities from 2013 to 2018,this paper studies the impact of the tax burden on different levels of consumer groups of national residents,and further analyzes the impact of the tax burden on different levels of consumer groups of the high,medium,and low levels from the perspective of urban-rural duality,eastern and western regions,and urban agglomeration.Based on prefecture-level city data,this paper found that the distribution pattern of per capita household consumption data obeys normal distribution.Therefore,subsites1-3 were defined as low-level consumption groups,subsites 4-6 as intermediate level consumption groups,and subsites 7-9 as high-level consumption groups.The non-cumulative panel quantile model is used to analyze the impact of the tax burden on different levels of consumer groups.The following conclusions are drawn: First,from the perspective of the whole country,the tax burden severely restricts the middle level of consumer groups,and has a positive effect on the high level of consumer groups;Second,from the perspective of urban-rural duality,the tax burden hurts the middle-level consumer groups of urban residents but has a positive effect on the middle and high-level consumer groups in rural areas.Thirdly,from the perspective of eastern and western regions,the tax burden hurts the residents’ consumption in the middle and high scores in the eastern region and a positive effect on the middle-level consumer groups in the central and western regions.Fourth,from the perspective of urban agglomeration,the tax burden mainly has a significant negative impact on the intermediate level consumer groups in the new first-tier cities and third-tier cities and has a certain promotion effect on the intermediate level consumer groups in other cities.In the reform of the tax system and policy optimization,we should pay attention to differentiated tax cuts,adopt targeted policies to promote the consumption upgrade of groups of different levels and targeted expansion of consumer groups at the middle level,ensure the steady growth of the middle-income group,and ensure that tax cuts and consumer consumption develop in a coordinated way.This study can provide decision-making reference for the tax system to accurately and continuously promote the consumption upgrade of different levels of groups,such as the whole country,urban and rural areas,eastern,western,and urban areas,and urban agglomeration,to form a strong domestic consumption market and ensure the stable economic transformation.