The Study On The Establishing Of Social Security Tax In China

Social security refers to the fact that the government takes certain action programs to offer the social welfare for the citizens through assistance measures guaranteeing the most basic life for the population who have problems with their work. This system is controlled by the government and ensured by certain rules and laws. The history of foreign countries and China can tell us that though governments’action is in different forms, the purpose of all governments’action is to promote welfare of the population. Therefore, it can be said that social security system has been existing for a very long time. This kind system has been various reforms since it occurred. Now, many countries have established a comprehensive social security system. In order to promote the welfare of the population, most governments have chosen to levy social security tax.In China, when the government chose the market economic system, given the situation of the country’s economy and society, the government chose social insurance premium system to collect the money to promote welfare and security of the population. At very beginning, this kind system indeed had some influence on people’s life. However, as the economy is developing rapidly, this system can not keep up with the economic conditions anymore. So the disadvantages of this kind system become more and more serious, like it only covers for a small part of the population; the gap between urban areas and rural areas is wider; it is hard to collect enough money for this system to keeping working; the law to protect this system is effective. These disadvantages have bad effects on the social security.Since China has implemented the Reform and Opening Up policy, the country’s economy has began to develop rapidly. Rapidly developing economy brought people better life and that directly led to people’s need for better social security. Meantime, more and more financial allocations of funds have been provided for social security which has put a lot of financial pressure on the government. So the present social security system must be reformed to reduce government financial pressure and to solve the disadvantages of the social insurance premium. Lacking of money is the most serious problem of the present social insurance premium. Levying social security tax has been proved by many countries that it is the most effective way to collect money for social security. Actually, the tax revenue of social security tax in American is just next to that of income tax. So with the experience of foreign countries about social security tax and the conditions of China’s economy and society, levying social security tax seems to be the best way to solve the problems and collect more money. This article has been hoping that series of arguments in this article will make it clear that social security tax is the most effective way to optimize the social insurance premium.During these years, the economic market in China has been changing and the social insurance premium which was established on the condition of the past economy doesn’t change with it. So the present social insurance premium cannot keep up with China’s present development of economy and that is against the fact that social security must keep up with the economy. Only by reforming the social insurance premium will China’s social security function well.At the beginning of1990s, there have been intense arguments about whether China should levy social security tax or not. Due to these arguments, the reform of social security system moves slow and the most serious problem of the social security system---lacking money, cannot be solved. As far as I am concerned, China should collect enough money for social security as soon as possible. To collect enough money, the best choice is to levy social security tax. So a lot of problem about present social insurance premium will be solved easily. Therefore, I choose this topic to discuss hoping this article will be helpful for the reform of the social security system. Based on the conditions of China’s current situation and living standard of citizens, this article will mainly talk about levying endowment insurance tax.In order to complete this article, many research methods have been used. I use historical analysis method to review the history about social security system in both China and foreign countries. Knowing the history will help to establish better modern social security tax. Comparative analysis has been used to show the differences of social security system between different countries to know more theories about social security tax. The main methods adopted by this article are theoretical analysis and empirical analysis. This article first use theories to analyze problems and then use the facts to prove those things. So the article will be more convincing that levying social security tax in China is the wise choice.This article first reviews and summarizes the foreign social security systems and then analyzes the study about social security system in China. Based on that, the paper starts to study and expound the issue to levy social security tax in China. There are nine chapters in the whole article. Chapter one is the preface telling the background, the purpose and the meaning of this article. Chapter two sums up and evaluates the development of social security system in the foreign countries and the study about it in China. Chapter three tells the theories about social security tax. Chapter four shows the historical process about social security system in China. Chapter five demonstrates the disadvantages of China’s present social security system. Chapter six talks about the feasibility and necessity of levying social security tax in China. Chapter seven offers some ideas about the details of social security tax. Chapter eight gives some suggestions about social security tax and predicts some results of the social security tax.During the preparation of this article, I read a lot of famous scholars’ articles to understand their opinions about social security. Meantime, the Internet has been very helpful by offering huge information. In this article, I start with those famous scholars’ opinions and then show my own opinion and proof to my opinion. The most specialty about this article is that the article adopts many data to demonstrate the argument. Besides, the article also has a particular project for the social security tax, like the taxpayer should include all the citizens; both employers and employees should pay the tax; for the items of social security tax, the government can begin with the endowment insurance tax so it will not increase people’s tax burden. As for the other items, it can be discussed later. The article adopts some formula and data to estimate the tax rate of each taxable item.Due to the limitation of my knowledge and understanding of our economy, so maybe there are some errors in this article. So I wish readers will help to improve...