The Incidence of the Enterprise Income Tax in China——A General Equilibrium Analysis of Two Departments
ZHAO Yun-hui1,2, WANG Peng-fei1
(1.School of Business Administration, Inner Mongolia University of Finance and Economics, Huhehot 010070,China; 2.Business School, Central University of Finance and Economics,Beijing 100081,China)
Abstract：
This paper analyzes the incidence of the enterprise income tax in China through the method of a general equilibrium analysis and the latest industry data. We calculate the substitution elasticity of production factors and the substitution elasticity of production demands according to the status in our country. This paper analyzes China’s corporate income tax burden and sensitivity. The results show that owners of capital bear 77% of the tax burden, and owners of labor bear the rest of the tax. In view of Chinese capital tax easily passed on to labor, this research puts forward the countermeasures and suggestions.
ZHAO Yun-hui, WANG Peng-fei.The Incidence of the Enterprise Income Tax in China——A General Equilibrium Analysis of Two Departments[J] Economic Survey, 2015,V31(4): 149-154
2015 
