The Construction Of China’s Welfare System For Old People Through The Perspective Of Finance And Tax Law

Along with the process of aging population, governments all over the world arefacing the same challenge of how to build a perfect welfare system for old people andhelp them get a better life. Some foreign countries have gained successful experiencesduring practice, however Chinese scholars haven’t dug into this field yet. Therefore,author chose this issue and focused on the situation and problems of China’s welfaresystem for old people in the hope of providing new ideas through financial and taxways. This article not only discerns the flaws of the current system from finance andtax angles, but also presents resolutions through theoretical testifying and experienceslearning.This article uses different methods in research including multidisciplinaryanalyzing method and comparative method.First author probes into the definition of “welfare system for old people”.Academia holds different opinions for “welfare” so that “social welfare” and “socialsecurity” are sometimes mixed up. This article insists the narrow definition of “socialwelfare”, explicitly explains the welfare system for vulnerable old people, andprepares for the research below.Then author solves the “why” problem in constructing the system by quotingjurisprudence and sociology, the “what” problem by finance and tax law theories, and the “how” problems by welfare economics and plutonomy. Justice theory ofdistribution, multi-layer protecting theory, resource allocating theory and ParetoOptimality are also used to found the theoretical basis for the system.In addition, author combs and reviews China’s existing welfare system for oldpeople and distinguishes the root of all the problems. Then author analyses severaltypical foreign countries and takes advantages of their advanced welfare systems forold people to sort out practical patters for China.Finally, based on finance and tax law, author puts forward suggestions forconstructing China’s welfare system for old people. Government should enhance thelegislative level, increase financial input, use transfer payment and governmentprocurement etc. and also inspire tax incentives to lift service standard and create abetter welfare environment.The innovation of this paper lies in the application of finance and tax lawtheories instead of sociology theory. Also the elaboration of several related theorieshelps support the whole research. An investigation was taken to replenish theconclusion.While talking about defects, the limitation of time and the difficulties in datacollecting would be a good reason. Interdisciplinary theory also increased thedifficulty. The reform of a country’s finance and tax system is such a big project thatwithout reformation any advice would be inane.