The Economic Analysis and Tax Incentive Study of the Social Giving
|Keywords||social giving intrinsic motivation external influences tax incentive price elasticity|
The social giving studied in this paper is that the individual citizen or units voluntarily give their valuable things to others freely or partly paid, and it allocates resources on the basis of functioning market and government mechanism. As the balancer regulating the gap between the rich and the poor, it is good for optimizing the allocation of resources, equating income distribution and promoting social harmony.The key to encouraging the development of social giving is that we should understand deeply and master the giving subjects’ behaviors and its laws. This paper is expected to study systematically and thoroughly the intrinsic motivation and external influcing factors and analyze the factors affecting the social giving of enterprises or individuals and the formation of their preference from the perspective of theoretical innovation, and then explore the supply decision mechanism of social giving so as to provide the theoretical instructions and foundations for the government to work out tax incentive policy which promotes social giving. At the same time, on the basis of studying the social giving theory, we draw on the basic experience of developed countries’ tax incentive policies, analyze thoroughly the present condition and effects of Chinese government’s social giving tax incentive policy and design the tax incentive framework which promotes China’s social giving so as to promote the development of social giving and realize the fair income distribution.Investigating the intrinsic motivation and external influcing factors of the social giving is the theoretical basis of studying social giving. According to the degree of altruism, the intrinsic motivation of social giving can be divided into altruism, reciprocity and achieving direct proceeds. From the perspectives of supply and demand, the external influcing factors of social giving can be divided into community needs, giving subjects, giving forms, non-governmental organizations and government policies. Firstly, community needs mean that demands of social giving are multi-faceted, which include education, culture, health care, social welfare and religion and so on. When the government can not supply sufficiently or efficiently in these areas and meantime the market can not supply either, community needs, emerge. Secondly, when giving subjects are individuals, income, age, educational level, religion and other factors affect their giving choices greatly. When the giving subjects are enterprises, industry attributes, industry competition degree, the scales of enterprises and other factors have effects on their giving preferences. Moreover, giving subjects will affect each other. A person’s giving behavior can affect others’ giving choices through substitute effect, demonstration effect and asymmetric effect. Thirdly, the bottom line level of giving, the type of giving mechanisms, reward level and whether there is repayment guarantee will also affect social giving. Fourthly, non-governmental organizations are carrier of indirect giving, and its credibility, operation and management levels affect directly individuals’ or enterprises’ giving enthusiasm for them. Fifthly, government policies penetrate the whole process of giving behavior’s formation, implementation and continuation, and have an impact on intrinsic motivation of giving, giving subjects, giving styles and other factors.Tax is one of the external factors which affect social giving, and it is also an important means of encouraging social giving which is adopted commonly by most countries in the world. As far as individual giving is concerned, the personal income tax can have impacts on personal income and giving price through income effect and price effect, and then influence the preference and motivation of giving subjects and promote effectively the increase of cash giving. Moreover, the personal income tax can also influence the direct benefits of giving subjects through direct and indirect ways, and then influence time or service giving. In addition, the estate tax can also function in the heritage quantity and its tax price through income effect and price effect, and then influence the preference and motivation of giving subjects. As far as the corporate giving is concerned, tax can influence it by affecting the corporation’s profit and the managers’ preference. According to the analysis of profit maximization model, tax incentive only has short-run effect on the corporate giving. However, according to the analysis of utility maximization model, tax incentive has long-run effect on corporate giving.After analyzing theoretically the influence factors of social giving and the function mechanism of tax encouraging social giving, we choose three countries which represent three different kinds of giving patterns---the United States, Japan and the Netherlands, then review and evaluate their tax incentive policies of social giving in this paper. Through summary of the three countries’ social giving tax incentive policies, we can see that the tax incentive policies of these countries have significant price effect and income effect, and the success of these policies mainly result from the following bases. The first one is the driving of intrinsic motivation. The second one is these countries all have higher economic development level and per capita national income. The third one is they all have more perfect social giving system and advanced means of collection and management. The last one is they all have more perfect non-governmental organization system.Compared with developed countries, China’s social giving started later and only developed since the 1990s. After more than 10 years of practice, China’s social giving has improved in scale, form, structure and so on, but there are still many problems such as the small giving scale, few giving forms and low rate of public participation and so on. Apart from the influences of economic situation, non-governmental organizations and other factors, the influence of tax incentive also should not be underestimated. However, as far as the individual giving is concerned, results of the questionnaire survey show that its policy effect is not obvious. As far as the enterprise giving is concerned, according to results of the measurement analysis based on the related data of the questionnaire survey on 256 enterprises of Shandong Province in 2006, the giving quantity of enterprises is inversely proportional to the tax price, that is with the decrease of tax price or the increase of deductible proportion of enterprise’s giving, the giving quantity of enterprise will also increase and the price effect of enterprise income tax is more remarkable. The more remarkable price effect shows that the tax incentive policy of China has played a certain role, but it should be further improved and strengthened. On this basis, we put forward the whole plan of designing and constructing the social giving tax incentive system in this paper. Firstly, we should perfect the social giving tax incentive system and increase the incentive and constraint intensity. Secondly, we should perfect the tax collection and management system of social giving and increase the intensity of enforceability. Thirdly, we should strengthen and promote the propaganda and education of social giving tax incentive policy. Fourthly, we should perfect other complementary measures which include promoting the legislative process of social giving, strengthening the propaganda of social giving cause and the supervision of non-governmental organizations.