Research On The Fiscal And Taxation Policies Concerning The Development Of China’s Pension Services Under The Background Of An Aging Population

Currently, the aging of population in China is becoming increasingly severe, it is a significant change which involves economy, culture and many other aspects. Also, it may confluent social relations and inter generational relationships. Overall, China’s pension service system is still at an early stage of development, which can hardly meet the enormous needs of the elderly under the demographic aging tendency. How to reconcile the conflict between supply and demand in this industry, and how to change the state of single product in the market, how to refine the pension services and other issues remain to be resolved.Accelerating the development of pension services may have two major impacts. On the one hand, it can meet people’s demands for pension, and make sure the elderly can be aged with support; on the other hand, the medical, health care and other survival needs of the elderly contain lots of market potential. Activating the elderly consumer market helps a lot to expand domestic demand and promote economic development. Therefore, how to properly deal with the aging of population, how to keep a harmonious balance between pension services and the economy has become a problem of the current government and the whole society.Fiscal and taxation policies play an important role in macroeconomic regulation and control all along. The functioning of fiscal and taxation policies is significant to the development of pension services. There is no doubt that China’s current fiscal and taxation policies can to some extent boost the development of pension service industry, however, the lack of fiscal input, the low efficiency of fiscal input, low tax incentive and other issues are still quite prominent. Thus, it is imperative to reform the current fiscal and taxation system.Based on these considerations, this paper is dedicated to discuss the relevant theoretical basis, analyze the current state of the pension system, talk over the drawbacks of the current policies. Also, this paper collected and sorted the statistics of 31 provinces and municipalities ranging from 2004 to 2014, then used the panel data model to examine the impact of fiscal factors on pension services. Finally, this paper gives out some policy recommendations based on the lessons drew from the experience of both developed and developing countries.