Research On The Institutional Dilemma Of "Five Social Insurances And One Housing Fund"

With the coming of China's aging society,the rigid expenditure of social insurance increases and the pressure of financial subsidy is aggravated.At the same time,the burden of "five social insurances and one housing fund" is not light,and the payment of enthusiasm is not high,which causes the system dilemma of "five social insurances and one housing fund" collection.In the face of this problem,the "five social insurances and one housing fund" is regarded as the transaction cost of the enterprises and workers in the labor market,by distinguishing the essential attribute of"five social insurances and one housing fund",and then using the GDP three sector model to explore the influence of the collection of "five social insurances and one housing fund" on private investment and private consumption,and to draw on the experience of international tax reform for reference,it should put forward to some targeted solutions.According to the survey about the corporate tax burden,the problem of "five social insurances and one housing fund" institution dilemma is found.That is if government collects it by the law which would cause the heavy burden for the company and staff,or if not the social fund would run by deficit.Analysing the literatures about "five social insurances and one housing fund",many scholars would discuss about the reform of fee to tax or fee to tax,and ignored the nature of "five social insurances and one housing fund",thus losing the anticipation about the future reform direction.Few scholars would treat "five social insurances and one housing fund" as the transaction cost between enterprises and workers,and pay less attention to the dual influence on private investment and private consumption from "five social insurances and one housing fund".In the face of the problem about the social insurance being unable to make ends meet,many scholars tend to pay attention to the improvement of the efficiency about the tax collection and management,but few views from the perspective of corporate tax burden and the wage tax burden of employees,we propose a win-win solution for enterprises,employees and governments.It is necessary to analysis the nature of "five social insurances and one housing fund institution",which does not belong to the welfare category.With the help of "tax three characteristics"(compulsory,free and fixed),the similarities and differences of the tax and fees could be concluded.Refer to Smith's tax shifting and Buchanan insurance illusion,"five social insurances and one housing fund institution" is not a general sense of the welfare category.Using the tax theory and effect,combined with the hypothesis of right and its cost,with reference to international experience,it is clear that "five social insurances and one housing fund" has the typical characteristic of tax.From the angle of corporation tax burden,"five social insurances and one housing fund"institution is not only a part of labor costs named the institutional burden,but also an important component of enterprise tax burden,which causes the effect on the capital investment.In order to measure the corporate tax burden,the means named "total tax rate" is employed to calculate the tax burden and gross profit rate from the representative non-listed company and listed companies.It is found that the reduction of gross margins would lead to the acceleration of corporate tax burden.Specific to labor tax which is a part of the "total tax rate" index,namely "five social insurances and one housing fund",if there are too much collections on the revenue it would increase the cost of capital investment,thereby reducing the rate of return on investment,thus inhibiting investment both at home and abroad.From the angle of wage tax burden,"five social insurances and one housing fund" is the income tax deduction for staff,which has a significantly impact on the staff's income.Giving someone's salary in the Enterprise N from the Province Z as an example,under the condition of compliance payment,"five social insurances and one housing fund "become a heavy tax on wage significantly.On one hand it reduces the staffs current disposable income,thereby inhibiting the consumption driven by the staff;on the other hand,taking into account the inhibition of excessive"five social insurances and one housing fund" on investment,then it would reduce the rate of return on investment,affect the capital dividend and the increase staff's wages,at the same time,due to the effect on investment from the heavy collection of“five social insurances and one housing fund" it would also reduce job creation,thereby affecting the market demand and the price of labor.From the perspective of the transaction cost,"five social insurances and one housing fund"has an evident effect on private consumption and private investment.According to Keynes' GDP macro theory,starting from the three factors between investment,consumption and tax,when "five social insurances and one housing fund" increases,it would cause more harmful effect on private investment and consumption.To measure the effect of "five social insurances and one housing fund" on private consumption and investment,it is necessary to found the model about“five social insurances and one housing fund" and GDP,throuth the regression test by using the provincial panel data,it would be found that "five social insurances and one housing fund" has a harmful effect on the private investment and consumption obviously.About the analysis of the tax burden of enterprises and staff,it is also confirmed in the real world.Compliance costs of "five social insurances and one housing fund" institution,and the institution's imperfections,which affect the compliance of enterprises and staff.Giving the city named A city from A Province as an example,it records the different views and actions of local enterprises,social insurance departments around the "five social insurances and one housing fund".It could be found that the pros and cons of "five social insurances and one housing fund" levied on local economic development.Finally,based on the questionnaire of traditional craft industry,which is measured in the specific industry,"five social insurances and one housing fund" has the effect on corporate profits,employment cost and employment scale.About the domestic reform about the dilemma,the path of state-owned capital profit enriches the social insurance fund,although it would help repay its restructuring costs,considering that the social insurance fund is unbalanced,future pension burden is still heavy,so that over reliance on state-owned capital is not a permanent solution.Taking social insurance contributions as the deduction of value-added tax,it helps to encourage enterprises' participation in social insurance on the micro level,especially in terms of sufficiency and compliance,so as to improve the payment compliance of enterprises and employees,and to solve the dilemma of social insurance collection.From the fees to tax about "five social insurances and one housing fund",it could restore the nature of tax,from the point of view of the corporate tax burden,it would reduce the institutional cost of the market member,to deal with international tax competition environment,it is worthwhile to practice which respect the enterprises and employees,promote cross regional flow of labor and capital,in the process of modern fiscal construction,for the adjustment of the relationship between central and local government,improve the tax system.The following conclusion is drawn:the "five social insurances and one housing fund" has a strong tax nature,which is different from the general concept of welfare and fee."Five social insurances and one housing fund" is not only a big part of enterprise's tax burden,but also an important part of the wage tax burden for the workers;the excessive levy of "five social insurances and one housing fund",would cause side effects on the private investment and private consumption obviously.The probable innovations during the analysis:this paper gives the definition of the nature"five social insurances and one housing fund";to analyse the influence of the "five social insurances and one housing fund",of enterprises and workers in the labor market from the perspective of transaction cost;taking the research method of "total tax rate" from the WB and"taxing wages" from the OECD,we measure the "five social insurances and one housing fund"under the influence of the tax burden of enterprises and workers the wage tax calculation;in the harmful effects of Coase's view,this paper analyses the influence of "five social insurances and one housing fund" on the private investment and private consumption.