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Tax reform, as an important measure of national macroeconomic regulation, is of great significance in stimulating resident consumption. The article selects data on individual income tax and resident consumption levels in Hubei Province from 2016 to 2021 as research samples, and uses SPSS software to empirically analyze the impact of the 2019 new individual income tax reform on resident consumption. The research results indicate that individual income tax reform can effectively promote resident consumption expenditure, and reducing residents’ tax burden is beneficial for promoting resident consumption. Based on this, the article proposes suggestions from three aspects: the individual income tax collection system, the individual income tax rate structure, and the tax regulatory system, providing theoretical reference for deepening the individual income tax reform.
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