The Study On The Regressive Effect Of The Personal Tax Deferred Commercial Endowment Insurance

The research object of this paper is the regressiveness of personal tax deferred commercial endowment insurance.Personal tax deferred commercial endowment insurance refers to the part of the income that costs on their commercial insurance can be deduct before the personal income tax.The tax will be deferred until the pension is received.In order to make the calculation result more representative,the data is selected.According to predecessors`s commonly way to processing data,I choose the data that annual wage is above 6000-yuan and the final data is weighted according to the number of people.Through calculation,this paper draws the following points and conclusions:(1)Regressiveness of cities.A major feature of China's economic development is the imbalance of regional development.The level of development in different regions is uneven.If the same pre-tax deduction ratio or quota is implemented throughout the country,the taxation of the central,eastern and western cities will be regressive.The calculation results show that the more advanced the economic are,the higher the pension replacement rate will be.The pension replacement rate highest is east,then next middle and west is lowest.The tax replacement rate for commercial deferred pensions and the growth rate of wages in different regions are opposite to each other.(2)Regressiveness of individuals.The regressiveness of individuals is mainly reflected in the regressiveness of individual`s different genders,incomes and ages under the same pre-tax deduction ratio.The results show that men's pension replacement rate is higher than that of women under the same conditions;The individuals with higher incomes enjoy more tax preference;Under the same pension policy and pension products,compared with the younger policy holders,the older taxpayers can enjoy the tax preference will have a smaller proportion of their premiums.The main contribution of this paper is to expand the research scope to the all cities in the country,and analyze the tax-deferred regressive phenomenon from a national perspective.The difference in pension replacement rates may have certain reference value for policy makers.In addition,when analyzing the difference in pension replacement rate caused by individual age differences,the product data is come from the company included in the pilot of the tax deferred commercial pension insurance,so the result is an objective test of the effectiveness of the pilot policy.