The Analysis On The Nature Of Social Security Fund And Tax Collection And Administration

Social security system known as the"safety net"and"automatic stabilizer"is an indispensable part of the market economy. Since the 1950s, there has been a rapid development in modern social security system and social security tax. Social security tax has become an overriding means of financing. In China, owing to the defective social security system, its means of financing remain in the phase of fees, which do not fit in with the growing expenditure on social security fund and lead to the increasing financing gap. In the theoretical circle, the modes of financing have been in dispute for the recent decade. The decision-making of the government has been badly affected by the objection to the transition from fees to taxes. In order to maintain social stability and create favorable social environment, the government has increased the financial allocation continually, which results in financial burden. Taxation on social security is our first imperative so as to solve the problems existing in the source of fund and management system.This thesis takes the attributes of social security fund as the starting point, elaborates on the problems in the modes of social security financing, and introduces the dispute in the transition from fees to taxes as well as its analysis and evaluation. The attributes, feasibility and practical significance of social security tax are also discussed. This thesis analyzes the factors of social security system by reference to three main foreign financing modes and brings forth the associated measures for the imposition of social security tax.This thesis consists of six parts, i.e. introduction, main body containing four chapters and conclusion.The first part is introduction. The establishment of a sound social security system is of great importance for China's political and economic reform, which concerns the stable development of China's society in politics and economy, and helps people live in peace and contentment. Moreover, raising sufficient funds is prerequisite for the important role of social security system played in balancing the social interests, alleviating social contradiction and maintaining social stability and unity.In Chapter One the attributes of social security tax is analyzed, including the origin and development of fees and taxes as well as the comparison between fees and taxes. Social security tax is characterized by its fund and taxation flavor, which means the mandatory feature of tax and mutual aid of funds. Funds are not mandatory enough, while tax can compensate for that disadvantage; tax can be appropriated, while funds can provide clarification of property rights. Thus, it is reasonable to define social security funds as tax. Based on the beneficiary principle, social security tax is a tax levied on the employer (or enterprise) and the beneficiaries, with its revenue being incorporated in the budget management for social security expenditure. Social security tax is of coerciveness, normalization indirect return-ability and has the feature of special tax for special use.Chapter Two is the analysis of the transition of social security from fees to taxes. Not only the nature of taxation and the charging system should be taken into consideration, but the innate law of social security should be satisfied in the choice of the modes of social security financing. Tax, which forms state finance is state compulsory and its legal relation is the relation for public law of political states. The origin of social security premium is funds, which are voluntary and mutual aid. The legal relation of security premium originates from the private law of civil society. There are a lot theoretical conflicts between funds and taxes. The traditional theories of funds and taxes can not interpret social security financing system, and therefore the theoretical innovation and breakthrough should be conducted. In modern society, social security enforced by government is quasi-public goods which concerns security and stability of the whole society, that is, it is mandatory and of taxation fixity. This part mainly introduces the problems in social security financing, namely, low level, small range, poor management and difficult collection, and the dispute in the modes of social security financing from the theoretical circle, the taxability of social security tax as well as the practical significance of social security taxation.Chapter Three is the exposition of factors of social security system. Introducing three social security models, i.e. welfare state model, social insurance model and model of accumulation of personal savings, this chapter puts forwards partial accumulation mode of combining socially pooled funds with personal contributions. The analysis is also made in the scope of the taxpayers, object of taxation, applicable tax rates and administration of tax collection.Chapter Four makes an analysis of the associated measures for the taxation of social security. The collection of social security tax is a complicated transitional process, the realization of which requires support and cooperation between related regulations and social environment. According to the neo-institutional economics, in order to achieve the ideal goal of transition of a new system, its complementary system must be carried out simultaneously. Thus, in order to reduce the resistance in social security taxation and lower the cost, supporting reformation related to social security taxation should be conducted. It mainly indicates that the taxation of social security should be integrated with the concrete conditions of China; the social security system, financial budget and payment system should be improved; the construction of labor market, information management system and capital market should be strengthened.The last part is the Conclusion, which points out that sufficient funds are the first prerequisites for the operation of social security system. With out fund guarantee, social security system is just pie in the sky. China is confronting the unprecedented need of social security fund. Referring to the successful foreign experience, the imposition of social security tax is the best solution to social security fund. The special features of social security system indicate the mode of financing is naturally taxation. The coerciveness and taxation fixity together determine the imperativeness of social security taxation.