Social Security System, Tax Reform Chu Theory

It was clearly stated in "The 9th Five-Year Plan of National Economy and Social Development & the Target Compendium for 2010 of the People's Republic of China", which was approved by the 4th conference of the 8th People's Congress, that "to levy legacy duty, bestowal duty, interest duty and social security duty". It is the best way to overcome the disadvantages of our current social security system to raise social security funds through the social security duty system. Therefore the establishment of a complete social security and legal system is vital for expediting the socialist economy construction.The "foreword" of this article addresses the purpose of levying social security duty. It points out that to levy social security duty, not only does it bring out the special purposes of taxes, what is more important, it will establish a social security system that is adjusted by taxation. Only if we establish a social security system that is suitable for our country can we promote the justice and development of our society.The first paragraph of this article introduces the historical evolution of our social security system and analyzes the basic characteristics as well as the main modalities of the system. It points out that in our country a new social security system which contents endowment insurance, unemployment insurance and medical insurance is being constructed, but the problems existing in the levying of social security funds have become severe barriers for the development of our social security system.The paragraph of this article analyzes the general situation and the direction of the collection of social security funds, which is being done by taxation authorities. We can tell from the analysis that although there are lots of advantages in this way of collecting social security funds, there are also lots of problems existing.The second third paragraph of this article compares the two mainstreams of the social security system currently used by developing and developed countries. It specifically introduces the basic situation of the Korean social security system, from which we can draw experience to perfect our system.The fourth paragraph of this article points outs that the starting point to construct our social security system is to form a correct concept, which is fundamental. The mainphilosophy brought forward by Mr. Jin Tian Kui in his "Social Security System of Basic Conformity" is explicated here. The author considers that the philosophy brings up a more specific social requirement target for the construction of our social security system.The fifth paragraph is a detailed design of the social security system. Issues related to social security duty, i.e. tax payer, basis for tax calculation, setting up of tax items, management of tax levying, etc. are annotated in details. The author raises a point that levying, management and utilization must be separated from each other in the collection of social security funds that supervisory procedures must be set up, and that social security duty must be related to inflation.The last paragraph summarizes the problems that need to be solved when setting up the legal system for social security duty. It points out that it is a complicated and systemic project to set up a social security duty system, which is suitable for our country. We must be practical and realistic so as to ensure the smooth progress of this project. We must base on our actual situation and draw experience from the others to construct a feasible social security duty system and further more, to establish a social security system with Chinese characteristics.