Study On Burden And Effect Of "Five Insurance And One Fund" In Manufacturing In China

As a national economic development cell,the enterprise s competitiveness directly affects the development of China' s economy.However,in recent years,the tax burden on enterprises has been aggravated and queried.According to the data released by the World Bank-Commercial Environment Project,Chinese companies from 2013 to 2017 The total tax rate fluctuates from 67%to 69%.The labor tax rate of the company(the labor tax rate in China refers to the ratio of the "five insurance and one fund" cost paid by the company to the commercial profits)is as high as 50%.The total tax rate for the company in 20]7 is 67.3%,the labor tax rate is 48.1%,accounting for 71.5%of the total tax rate.It can be seen that the "five insurance and one fund"is the main driver of tax burden for enterprises;from an international point of view,the labor tax rate of Chinese companies has been ranked in the world since 2013.Second place,second only to France,more than 30 percentage points higher than the world average.As a developing country,the higher“five insurance and one fund burden of Chinese enterprises does not match the economic development status,and the enterprises are too high."five insurance and one fund"burden will restrict the development of micro-enterprises,reduce the international competitiveness of enterprises,and ultimately affect China's economic development.The manufacturing industry has played a huge role in promoting China's economic development.This article will start from the manufacturing industry,analyze the manufacturing industry's“five insurance and one fund burden and the resulting economic effects and the manufacturing industry' s "five insurance and one fund burden.An empirical analysis of the employment effect was conducted in order to explore the countermeasures for balancing the social security system and economic development in China.This paper uses the qualitative and quantitative analysis methods to calculate and calculate the"five insurance and one fund”burden on the manufacturing industry,and finds that China's manufacturing industry has a higher burden of"five insurance and one fund",manufacturing industries with different market types,and"five insurance and one fund"for enterprises.The overall burden is that the main board,small and medium board,GEM,and new three boards are gradually declining.Manufacturing industries in different industries,the "five insurance and one fund burden of advanced manufacturing is lower than traditional manufacturing,heavy industry is higher than light industry,capital-intensive The "five insurance and one fund”burden on the manufacturing industry is relatively high,and the burden on "five insurance and one fund”is relatively low for labor-intensive enterprises.Manufacturing in the different economic regions The manufacturing industry in the Midwest has a higher "five insurance and one fund" burden than the eastern region.Excessive "five insurance and one fund" burden will have different economic effects,including cost effects and crowding-out effect on corporate profits,employee wages,and labor force employment.It is found through the calculation of profit crowding out effect that when the enterprise "five insurance and one fund" of payment for net interest rate is about 2%,accounting for about 30%of net profit.Through an empirical analysis of the“five insurance and one fund" employment effect on the enterprise,it has found that the“five insurance and one fund" for the overall manufacturing industry is in employment.As a result of the crowding-out effect,when the company's "five insurance and one fund"contribution rate increased by 1%,employment dropped by 0.191%,and there were differences among enterprises in different economic regions,market types,and factor-intensive industries,including western regions,small and medium-sized boards,and technology-intensive.The"five insurance and one fund" of the enterprise did not squeeze out employment.The " five insurance and one fund" of the central region,the eastern region,the main board,the GEM,the labor-intensive,and the capital-intensive enterprises all exerted varying degrees of crowding-out effect on employment.