Tax Structure and Household Consumption——Empirical Analysis Based on China's Provincial-level Panel Data

摘要

This paper analyzes the current situation of China's tax structure and does empirical research the relationship between tax structure and the Household consumption in China based on 30-provincial panel data of tax structure and the provincial Household consumption from 1996 to 2009. The results showed that: First, the role that changes in tax structure plays on the household consumption is directly affected by the level of tax burden; Second, compared with the effects that the tax burden has on the household consumption, the tax structure adjust the household consumption weakly; Third, the main role of increasing the proportion of direct taxes is to smooth the household consumption. We believe that in order by increasing the proportion of direct taxes to promote the household consumption, China needs to reduce the tax burden; if to increase the proportion of direct taxes lead to rising tax burden, it will not bring a better household consumption rise effect.