| Social security system is an important socio-economic system in modern state. It has played a pivotal role to protect people's basic livelihood and to promote the economic development and to maintain social stability. The key of Social security system is to have sufficient social security funds. Therefore, choosing a reasonable model of social security funding to ensure a stable source of social security funds is the core mission of a country's social security system.The contemporary Pattern of social security funding in China is payment system Pattern which has many disadvantages:including the small coverage, low-level co-ordination; high rate of payment, difficult collection; the payment system rigid is not enough which may causing serious loss of payment; decentralized collection of social insurance premiums, high cost of collection, and so forth. In addition, the situation of the population aging and the demand for social security fund are increasingly serious, which make it necessary reform the existing social security fund-raising pattern in order to form a stable and reliable financing mechanism of social security funds. Compared with the payment system, Social Security Tax Pattern has a stronger binding power and more uniform regulation of the collection. Its advantages are more prominent. It can help expand the coverage of social security, improve the overall level of social security, ensure the stable source of social security funds, regulate the social security budget, strengthen government functions and create a scientific and rational system of public finance. With so many upsides, the Social Security Tax Pattern has been applied in the most countries to mobilize Social Security Funds, which provides the experience for China to learn from. Nowadays. There are the required conditions in China, including mass basis, the source of tax and tax Collection system. So it is imperative to adapt the Pattern of tax system to financing the Social Security Fund.The Social Security Tax Patterns in Germany, UK, The United States and other typical countries have regular features, including taxpayers, tax base, the tax items. tax rate. in other words, they are the gradually increasing taxation form (or tariff). the enlarging taxpayers, the regular tax base, the increasing tax items, the steadily rising tax rate, and the separation among collection, management and use. All of these are lessons for China to learn from.Based on the reality of our country, the assumption for designing our Social Security Tax Pattern is:First, determine the national conditions step by step and the principles about burden-sharing, respective of the burden and income; unified collection, and special management; on this basis, The taxpayers include all the employees and their employers (including government departments and institutions, freelancers and farmers) who earn money; in respect of tax targets and the tax bases, set tax threshold and the upper limit on the basis of total salary; set the social security tax items according to the underwritten risk. First of all, set the Endowment insurance tax; it is not necessary to make the tax rate high, about 24.8%; the tax should be shared between the state and the local government and should be levied by the local institutions. Besides, this paper also promotes some suggestions on the tax legislation, the division of power functions, the interface between the social security tax and the existing tax system, the reformation of the wage monetary, and some other supporting measures after our Implementation of social security tax. |
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