The Effect of Turnover Tax and Income Tax on the Industrial Structure Adjustment

VAR model constructed by data from 1994 to 2009,the effect of turnover tax and income tax on the industrial structure adjustment has been studied by co-integration analysis,impulse response analysis and variance decomposition analysis.The results show,the effect from turnover tax is bigger than which from income tax in the long term,while the effect from income tax is bigger in the short term.However,both the impact has lag effect.Therefore,it is necessary to use the different tax in different period.