A Studyon The Fairness Of Preferential Tax Policies For Enterprise Annuity In China

With the decline in fertility under the background of the birth control policy and life expectancy to extend,China's population aging problem has become increasingly severe.China's pension insurance in the beginning of the establishment is the basic old-age insurance,enterprise annuity and personal pension savings —“three pillars”model.As the second pillar of the urban employee pension insurance system-enterprise annuity has an important supplementary role to the national basic old-age insurance.However,because of the slow development of the enterprise annuity,the limited coverage and the imperfect market development,the enterprise annuity can not bear the important task of the second pillar of China's pension insurance.From the perspective of theory,the enterprise annuity system combines the attributes of social security and social income distribution,which requires that the establishment and development of enterprise annuity system can not be divorced from fairness.In addition,the tax benefit is equivalent to an indirect financial subsidy form,inherent requirements must also consider the system itself fairness problem.From the analysis of objective reality,enterprise annuity has been dubbed the “rich club” because the participation of enterprise annuity plan is mainly state-owned enterprises,monopoly enterprises,large enterprises with good efficiency,large number of small and medium enterprises can not afford the enterprise annuity plan.Therefore,the development of annuity must focus on fairness to drive,by focusing on small and medium enterprises,low-income groups,to overcome the development of enterprise annuity bottleneck.The government will implement the annuity tax preferential policies will certainly reduce the current fiscal revenue.However,from the perspective of the whole social and economic welfare,it is a useful expenditure.Scientific and reasonable tax incentives can encourage enterprises to establish annuity plans.In the long run,this shift will increase the social welfare effect.This paper uses theoretical analysis,literature analysis,qualitative analysis,empirical analysis,simulation and other methods.The first part is the introduction part,mainly introduces the background and significance of the topic,the literature review at home and abroad,the research content and research methods of this article,and points out the innovation and shortcomings of this paper.The second part introduces the background and development of the enterprise annuity taxation preferential policy in our country,inspects the theory foundation of enterprise annuity policy,the meaning and function of enterprise annuity,then analyzes the positioning of enterprise annuity taxation policy and combs the development course of enterprise annuity system;The third part of the overall development of China's enterprise annuity in-depth study of the status quo,the analysis of the enterprise annuity coverage,the growth rate of enterprise annuity,the main groups to participate in the annuity plan;the fourth part analyzes the income redistribution effect of EET enterprise annuity policy,which includes the analysis of tax burden of individual income tax and the influence of EET on pension gap of enterprise employees.The fifth part mainly summarizes the analysis done above and puts forward personal policy recommendations.The results of this paper show that the slow development of enterprise annuity in China,especially the introduction of EET model,has not stimulated the coverage of annuity.The main problem is that the proportion of small and medium-sized enterprises and state-owned enterprises,monopoly enterprises and other large enterprises in the annuity plan imbalance,regional distribution imbalance because of our current tax incentives for enterprise annuity guidance is not clearly.Secondly,by analyzing the redistributive effect of enterprise annuity under the current EET model,we can find that the current EET model is more severe on the low income group than the TEE model,and the middle income group can obtain a positive tax dividend from the government and reduce the personal income tax burden through the analysis of the tax burden of individual income tax.Under the current EET model,if the employee receives a one-time pension after retirement,settles abroad or dies when annuity accounts have a large number of balance,which will bear a heavy tax burden;enterprise annuity has a widening effect on the pension gap,especially for low-income participants through mesuring pension gap.This paper puts forward some suggestions for the further tax policy of the enterprise annuity plan which includes establishing enterprise annuity eligibility mechanism and strengthening the tax preference to SMEs;establishing rights record file for the taxpayers,tax relief whenwithdrawing becaues of difficult,setting a tax cap for accidental death,changing the full amount of taxation for the difference tax.