The Study On Levying Pension Security Tax Of China

Everyone gets old. The old-age insurance system is the core of the world securitysystem, which holds the key to the success of the social security system. China has enteredinto aging society since the end of20thcentury and facing an increasing proportion of theelderly in the21stcentury. With the population aging and the decline in fertility, thetraditional family guarantees function inevitably weakened. Thus, the demand of socializednational pension insurance and related services increases.In the arrangement of pension security system, Government has to formulate policiesand take the necessary and reasonable measures to ensure the healthy development of thepension security system. As the choosing of financing method is the critical problem of theconstruction of old-age security system, we should find an effective way of raising funds.The paper discusses the way of raising funds and inquires the relating issues on pensionsecurity tax.The paper is intended, through data analysis, to discuss the current situation ofold-age security system of China from the perspective of broad coverage, basicinsurance, multiple levels and sustainability. Then the thesis points out the problemsin financing method of our country, such as the fragmentation of the old-age securitysystem, low coverage of the system, the large gap in pension benefits, the unreasonableendowment insurance transfer and sequence and the empty of individual account. However,we find out the introduction of pension security tax can solve the above problems to someextent. Therefore, it is necessary to levy pension security tax in our country. Furthermore,the conditions in economic, political, social and institutional are ripe for the pensionsecurity tax. At last, drawing on the experience of pension security taxations of Germanand Brazil and combining with the actual conditions of our country, the paper designs thepension security taxation. Also, the paper discusses about the supplementary measuressuch as improving the budget mechanism, perfecting the management system,consummating monitoring mechanism and completing the fund operating mechanism that building the system of pension security taxation should have to ensure the smoothimposing pension security tax.