Research On Pension Tax Rate Impact On Wealth Intergenerational Transfer Of Family In China

This paper is an important component of the national social science fund project,named ‘Tax Adjustment Study about Intergenerational Wealth Transfer and Extending Proportion of Middle Income Class'(15BGY132).The transfer of wealth is influenced by various factors such as wealth distribution policy,socio-economic environment and family ethics.This study focuses on the analysis of the influence of the pension tax rate on one of the wealth distribution policies on the transfer of wealth and the degree of influence on the transfer of wealth in the intergenerational wealth.Based on the theory of life cycle and intergenerational equity,this study measures the optimal pension tax rate under the maximization of economic growth and budget balance,and uses CHARLS survey data,macroeconomic data,and econometric method to verify the impact of the pension tax rate on the intergenerational transfer of wealth,on this basis,put forward the corresponding public countermeasures and suggestions.The main research contents are as follows:(1)The ethical basis of the old-age security and the distribution of intergenerational wealth;the theoretical model of the optimal pension tax rate measure.(2)The paper analyzes the optimal pension tax rate under the maximization of economic growth rate,maximizing investment rate and maximizing employment rate using the econometrics and mathematical analysis method,(3)Based on the population age structure and the prediction of each parameter,the dynamic optimal pension tax rate under the balance of budget is measured.(4)The influence of the pension rate on the intergenerational transfer of wealth is analyzed by using historical data,forecast data and cross-section data respectively.The empirical results of this paper are as follows:(1)The pension rate is 19.58% under the maximization of economic growth rate,the optimal pension tax rate is 2.46% under the maximization of investment rate,and the employment rate is maximized of the pension tax rate of 3.75%.(2)Changes in the age structure of the population,especially those in the old age population dependency,have an impact on the pension rate under the budget balance target.Based on the elastic coefficient of the impact of the elderly population on the pension expenditure,The annual maximum pension tax rate for fiscal and pension budgets are declining and reached a maximum of 9% in 2015,down to a minimum of 1% in 2050 and an average of 5% in 35 years.(3)The pension tax rate has a positive effect on the intergenerational transfer of wealth,and the scale of the intergenerational transfer of wealth is also affected by the parental characteristic variables and sub-variables.The conclusion of this paper is as follows:(1)The optimal solution of the optimal pension tax rate is the result of weighing the efficiency and fairness.It is the most effective form of social welfare function in selecting efficiency and fairness.The economic growth is the most efficient and the intergenerational fairness are the two specific targets for measuring the optimal insurance tax rate.(2)The pension tax rate and wealth transnational transfer degree is essentially a substitute for private savings and public savings,but also the problem of private family and government choice.(3)The common pension and wealth of intergenerational mobility tend to have significant social and ethical characteristics.(4)The determination of the optimal public pension tax rate needs to consider the economic growth,the population structure,the fertility policy,the income expectation,the tax system,and then the influence on the intergenerational tendency of wealth.The main policy recommendations in this paper are:(1)The determination of public pension tax rate to take into account the efficiency and fair objectives.The goal of efficiency ensures that the economic growth rate is maximized and that the fair target maintains the fairness between generations.(2)The government should actively build a mechanism for the flow of wealth between generations.(3)The government should make full and effective use of social security policy tools,including pensions.Public pensions are part of social security but not all.(4)Pension system,family wealth,inter-generational mobility system and pension model integration design policy.(5)Government public policy should be committed to preventing the accumulation of income and wealth accumulation.Disparity between the rich and the poor,occupational differences,living conditions,differences in social status,will evolve into a long-term curing process,and even intergenerational transmission.