Study On Legislation Of The Law Concerning The Social Security Tax In China

Social security plays an extremely important role in social fields like economy, politics, culture, etc. It promotes economic growth, maintains social stability and assures human rights such as rights for existence, rights for development and rights for other aspects. Stable and sufficient social security funds is the precondition and fundament for social security taking its place to the full. Therefore, setting up a reasonable way for the fund-raising of social security has become the key point. Currently, we have started the cause of social security, but it is imperfect in both operation and management. Problems resulted from the way of fund-raising is especially severe. For example it is low-effective and narrow-ranged. The way of fund collecting and management is unreasonable, and it lacks strong binding force. So we need to reform the way of fund-raising thoroughly.The most important thing currently is to start collecting social security taxes, and at the same time learn useful lessons from international practice to expound the necessity and feasibility of collecting social security taxes in China, and design a framework on its legislative principles and basic ideas. I also offer some disposals on the relative issue of reform.This paper is divided into four chapters. Here are the main ideas below:It is illustrated in the first chapter the necessity and feasibility of collecting social security taxes in China. Here is an analysis on its necessity at the beginning. Firstly, collecting social security taxes helps solve fund-raising problems of social security and make the fund-collecting and fund-operating separated into two parts thoroughly. Secondly, collecting social security taxes correspond to the trend of international social development. It also fits the needs for our nation while our economic system is stepping into international practice so as to accelerate our open-policy. Thirdly, collecting social security taxes helps people to have a mind of social security, and it helps promote the smooth and healthy development of the cause of social security. Fourthly, collecting social security taxes may break the monopoly of different areas, departments and lines. Therefore, social security can be just and fair, and the reasonable flowing of human resources and fair competition among enterprises can be realized. And that we can have a long-term stability of our society. Then, it comes to the feasibility of collecting social security taxes. Firstly, it has already has a Social infrastructure.For example, more and more people have been aware of paying taxes and join in the social security system. Secondly, it has already has a economic basis, which means that the source of taxes is adequate. Thirdly, social security taxes has got a judicial and institutional basis, Mainly for the "constitution" and the "PRC tax collection and management." "Budget Law" and other relevant laws and regulations for the introduction of a social security tax to provide a legal basis, insurance budget Payment systems are gradually improving; with the introduction of a social security tax collection base. This refers to China's social security system already has a strict system of sound, collect social security taxes have realistic.It is illustrated in the second chapter what are the legislative practices of foreign countries and what we should learn from them. Most countries collect a wide range of social security taxes. That means all the employees and employers in those countries should take the responsibility of pay taxes for social security, whatever their nationalities and living places are. Right to the range of their tax collecting range, the main target of collecting taxes are the salaries given by employers and taken by employees and that from individual businesses.The taxes are mainly set for aging insurance, medical insurance and unemployment insurance which are carried out widely and deeply in everywhere. The tax rate adopted is called"Item-division-proportional rate", and they are set very low at the beginning. The taxes are collected unitivly by tax division, and taxes collected are supervised by a special section that is responsible for social security. There are five aspects that we need to learn from them: At first, the design of certain taxes ought to fit a nation's economic condition. Next, social security taxes should be taken from the government, from enterprises, and also from individuals. Then, the taxes should be collected and supervised unitively and they are only for special use. The government should undertake the responsibility of social security. The legal system of social security should be perfect.It is illustrated in the third chapter the legislative principle of the social security tax. The principle of fairness and efficiency, the design should not only reflect the social security tax law, the principle of fairness but also embody the principle of efficiency. not for the sake of fairness and efficiency losses, nor fair sacrifice for the sake of efficiency. The principle of the protection of the rights of taxpayers. Social Security Tax Act, as the product of the social security system, more emphasis should be compared to other tax laws to respect and protect the rights of taxpayers. Adhere to the principle of combining social pooling and individual accounts. That the social security tax from the employee's average wage in accordance with national regulations and social security taxes amount deposited in the banks on time months accounts, personal accounts completely accumulate funds for the operation of state management of personal accounts. When profits are allocated in proportion to the total economic losses from the account from the state. Share the burden of principle. That the social security fund should be run by the state, enterprises and individuals to share the burden. This is also consistent with the principle of fairness, but also conforms to national conditions, but also with the majority of countries in the world practice. Step-by-step implementation of the principle of gradual and orderly progress. That the introduction of a social security tax to be "low level, wide coverage," as the basis, not national uniformity. all of the specific situation should be carried out gradually. These principles are different from other social security tax to the special tax principles. Is the soul of the social security tax legislation, law enforcement and legal interpretation of the criteria based on They determine the value orientation of the social security taxes.It is illustrated in the fourth chapter the construct of the legislation of social security taxes. It includes the main part for both tax collecting and tax paying, and the objects of tax paying as well as the foundation of how the taxes are worked out.Other aspects like the items and rate of taxes of social security, its starting point and its highest level, its collecting, operating and aid protection, and the reforms of its relative laws. Tax section is the only section that has the right to collect taxes.All the workers working in China and individual business owners that has income are supposed to pay these taxes. The total wages and the incomes and business profits are the foundations of collecting the taxes. The main method is like this: subtract the certain items of money that is written in law from the wages and incomes of tax payers. The items currently is limited within aging-pension, medical insurance and unemployment insurance, nothing more. The tax rate used is item-division-proportional rate. There should be a starting point and highest level."Main source controlling together with reporting by their own"policy should be adopted. The taxes collected should be allotted to the special section which is in responsible for operating. The taxes should be protected by setting relative juristic policies. The legislation of social security taxes should be on average the same with what is done in other countries. The special point is that: people of agriculture line, workers of the government, state-owned enterprises should be included as the main objects of collecting the taxes. Attached reforms are also necessary according to our national situation, including reforms on relative laws, reforms on budget systems, reforms on income tax systems, finally the reforms on wage-currencizing. Only by overlooking the whole world and standing in the level of our national situation can we work out a law on social security taxes that is precise and practical.