Research On The Feasibility And The Expected Effect Of The Social Security Tax’s Levy

This paper first describes the bottlenecks that currently encountered in the developmentof China’s social security, such as the issues that the rate of universal insurance is too low andthe coverage is too narrow, the quick increase of aging population has brought forward aimmediate challenge to the payment of social security funds, as well as backward legalsystem can’t provide a strong protection for social security. Obviously, as the “safety valve”of economic development and social stability, it has become a focus of universal attention thatwhether the social security system is sound or not. And then by identifying the shortcomingsof China’s current social security fund-raising mode, the paper points out the necessity oflevying social insurance tax.Through studying the literature of the scholars both at home and in abroad in the way ofliterature survey, this paper analyses the necessity and feasibility of social security tax reformboth in theory and practice, and at the same time, comparing with the social security system indeveloped countries, it learns the advanced experience of other countries on the basis ofconsidering the condition of our country, so as to explore the social security financing modelsfor China.The situation of our country at the present provides the feasibility for the levy of socialsecurity tax. From the system, on the one hand the legal environment is now continuouslyimproving, which has made the imposition of social security tax more authoritative andmandatory; on the other hand, the use of rigorous tax authority and wide-covered collectionand management of network can reduce the cost of collection and management of socialsecurity tax and ensure the raising of funds. Finally, using statistic analysis method this papermakes a sorting and classification of the national fiscal revenue and expenditure as well as theamount of spending on social security from2005to2009, we can see that our currentfinancial strength is increasingly strong, and it can provide solid backing for the payment ofsocial security funds. From the perspective of the social basis, the disappearance of “iron ricebowl” also brought universal risk awareness and the urgent need for social security as a basiclivelihood protection, therefore the whole people have a strong sense of paying the socialsecurity taxes, which will help carry out the work of collecting the social security taxes. At thesame time the experience of developed countries also provides reference on tax basis,collection and management experience as well as mode selection for the design and implementation of our social security tax.On the issue of the levy of social security tax we should take full account of our nationalconditions, design the social security tax following the principle of rights and obligationsbeing unified, special funds being earmarked and transiting placidly, and make it beingforward looking, acceptable and sustainable. As a special tax of specific purpose, socialsecurity tax’s design and implementation have the effect of adjustment on employmentconsumption and savings, so its design should take full consideration of the fundamentalinterests of insured persons on the tax basis; collection and operation management, tax itemsand tax rates, as well as promote our employment and consumption level, and achieve thewin-win situation of social and economic development.In allusion to our current economic and social conditions, through the analysis of theproblems and obstacles that may be encountered in the social security tax reform process, thispaper makes a few suggestions on the institution design of the imposition of social securitytax. Levying social security tax is a system project, which needs deep research on therestrictive conditions of various aspects, including legal system constructions, informationtechnology constructions, and so on. In addition, designing the social security tax must followthe principle of tax fairness, give full play to its revenue adjustment function, at the same timecombine with corporate income tax and personal income tax, consider the integrated effect ofall taxes, and make an overall planning of the tax system. At the same time, social security taxis something new, so governments at all levels and various types of media should dopropaganda work well, create a favorable external environment and make more peopleunderstand the connotation of social security tax and social security system, in order to reducethe resistance in levying social security tax and increase the community’s insuranceawareness.In short, through the analysis on the feasibility and necessity of the social security tax,studying and learning from the western developed countries’ advanced experience in thecollection and management of social security tax, the author makes a reasonable orientation ofthe social security tax, and at the same time emphasizes the cooperation of systemconstructions of related legal system and information, so as to ensure our residents’ basicsocial security rights and interests, and promote the further economic and social developmentthrough the implementation and promotion of the social security tax.