Research On The "Tax Incidence" Of Corporate Social Insurance Payment

Social insurance is usually regarded as an employee benefit.It is a necessary institutional arrangement.Social insurance can make up for market failures and has a certain redistribution function.But this benefit is not as big as it seems.On the surface,the enterprise payment is borne by the enterprise,but the enterprise can take various ways to form different tax incidence.According to the theory of labor supply and demand,when the government mandates enterprises to pay social insurance,it will lead to an increase in labor costs.So the labor demand curve moves to the left at any wage level.At the same time,the increase in social security can be seen as an increase in welfare,so that labor supply will increase and the labor supply curve will move to the right.When employees' evaluation of social insurance benefits is more high or the labor supply elasticity is smaller,the relative change of supply and demand curve makes the crowding effect of social insurance contributions on employee wages greater.However,the existence of this extrusion effect still needs the support of empirical research,but there are few studies in related fields in China.Based on this,this paper takes the tax incidence of corporate social insurance contributions as the research object,analyzes whether the increase of the social insurance payment of the enterprise squeezes out the wages of the employees and transfers part of the burden to the employees,and further analyzes the reasons and channels of the social insurance contributions squeezing the employees' wages.At the same time,according to the theory of labor supply and demand,only when employees fully equate social security benefits with wages or labor supply is completely inelastic,enterprises can transfer all social security burdens to employees by reducing wages.However,in reality,it is almost impossible for these two extremes to exist,that is,social security contributions still increase the burden on enterprises.Then,in order to maximize the profit,there may be other paths to transfer social security burdens.Considering that the high social insurance contribution burden reduces the competitiveness of enterprises and meets the reasons for enterprises to generate tax evasion,the author believes that in addition to transfer the burden to employees,the company may transfer the burden through tax evasion.Therefore,this paper also attempts to provide new ideas for the study of the tax incidence of corporate social insurance contributions from this perspective.This paper uses micro-enterprise tax investigation data to construct an econometric model.Through empirical analysis,the paper obtains the transfer path of corporate social insurance contribution burden—significantly crowding out employee wages and increasing corporate tax evasion.Although enterprises are the main source of social insurance funds,enterprises become non-actual bearers of social security contributions by transferring the burden,Which damages the legitimate rights and interests of the employees and causes the loss of the national tax source.It is not conducive to the welfare effect of the social insurance system.The article also makes a heterogeneity analysis on the tax incidence of corporate social insurance contributions.In the aspect of corporate social insurance contributions crowding out employee wages,the increase in the total wage of employees will enhance this effect,and the increase in the level of enterprise membership will weaken this effect.In the aspect of corporate social insurance contributions increasing corporate tax evasion,the increase in the total number of employees will enhance the incentive effect of payment on corporate tax evasion.The increase in asset-labor ratio and per capita output will weaken the incentive effect of payment on corporate tax evasion.The different effects of corporate social insurance contribution tax incidence in different enterprises will form different welfare distribution effects,which will increase income inequality to a certain extent,and suppress social insurance welfare effect and the effect of redistribution.On this basis,this article will propose policy recommendations from the following aspects: how to improve China's employee social insurance system,how to prevent the risk of corporate social insurance contributions squeezing wages and increasing corporate tax evasion,how to play the welfare effect of social insurance system to safeguard the legitimate rights and interests of workers,how to reduce burdens and taxes for enterprises.