Study On Beginning To Collect Social Security Tax's Problem In Our Country

Social security fund accumulation system was established with social security system in the same period in fifties of twentieth century and then developed. Under planned economy system at that time, it played an important role. Since nineties, government had improved accumulation method of social security fund. However, with reform and open-up and the development of socialist market economy, the original social security fund accumulation system became less and less suitable for the huge demand of capital in new situations. Therefore, it is urgent to find out a more appropriate accumulation method. 1. Necessity of beginning to collect social security tax (1) Accumulation method of ongoing social security fund and its problems. At present, social security fund in our country adopts accumulation method of social overall plan of paying while collecting combining with personal account. The problems are: demand for social security fund is much more than its supply; the pressure of ageing is huge; collection administration of social security fund is unjust; two sets of institutions engage in collection and therefore the cost is high and efficiency low. (2) Necessity of beginning to collect social security tax. It is helpful for regulating management of income and expenses and guaranteeing mutual constrain between usage and management of fund; helpful for establishing socialized management system of social security; helpful for maintaining society's long-term stability. 2. Feasibility of beginning to collect social security tax. (1)Tax resource of beginning to collect social security tax is basically available. With economic development, people's salary increases, personal accumulation and income reach a high level; income gap of residents becomes increasingly big and family deposit rate of residents of cities and towns increases annually. This establishes tax resource basis for beginning to collect social security tax. (2)Citizen's sense of risks increases. With reform of company stock-sharing system and progress of modern company system, the phenomena of bankruptcy, closing down, downsizing staff and reducing workers appear more frequently and consequently workers'living risks increase. The ageing of population is speeding up and citizen's sense of health strengthens. The harsh situations now and future makes sense of risks of people at all levels of society strengthen. Considering long-term interests, all citizens want to be included in social security system. (3)Citizen's sense of paying tax according to law improves step by step. With further implementation of ruling country and controlling tax according to law in our country, citizen's sense of honestly paying tax according to law improves, establishing foundation for beginning to collect social security tax. (4)Rigorous organizations are available for beginning to collect social security tax. There is a set of high-quality tax collection and administration institutions, a set of system to carry out budget and supervision in financial institutions and a set of up-down registration and supervision institutions for total sum change of salary between employed worker and unemployed worker in labor department in our country. This provides reliable organization guarantee for beginning to collect social security tax. (5)Tax information network gradually improves and perfects. The implementation of Golden tax project of tax system will provide more helpful conditions for the collection and administration of various kinds of taxes. 3. Overall design for beginning to collect social security tax in our country. (1)Choice of mode of social security tax in our country. Because the population of countryside is large, the differences between cities and villages are huge and household register administration is rigorous, social security tax should adopt mode of mixed social security tax, that is, for labors in cities and villages, set up social security tax according to insurance items conforming to requirements of different insurance expenses and draw from wage or salary in certain proportion. (2)Principles that social security tax design should obey in our country. 1. Principle of universality and justice. 2. Principle of legalization. 3. Principle of conforming to national conditions and respecting reality. 4. Principle of low starting point and low standards. (3)Social security tax element design in our country 1. Obliged taxpayer. Taxpayer for social security tax shall be enterprises and institutions, government institutions and individual. "Individual"here-mentioned covers staff in party and government organizations and public institutions with total budget management and peasant. Taxpayer for unemployment insurance and industrial injury insurance only limits to units and individual should not be included. 2. Target for tax collection. Target for tax collection of social security tax in our country shall be taxpayer's wage, salary and business income of self-employed people (including small industrial and commercial business). Wage and salary includes cash, income in kind with property of wages and equivalent income. 3. Basis of tax assessment. Basis of tax assessment of social security tax in our country shall deduct nothing and not set collection starting point and tax-exempt volume. When calculating income tax, it is allowed to consider social security tax as pretax deduction item of salary income. 4. Tax items. It is possible to set up old-age, unemployment and medical treatment tax items at first. Industrial injury insurance, disabled insurance and testament insurance shall be completely resolved by commercial insurance. While, birth insurance, disabled allowance, family subsidies and testament fostering allowance shall fall into the scope of social relief, veteran benefit and placement and social welfare and guaranteed by general financial expense. Capital comes from general tax income and it is necessary to include these items in the scope of social security tax when opportunity comes. 5. Tax rate. Tax rate design in our country shall set up differential proportional tax rate according to social security items. The total tax rate of social tax rate shall limit within 30% of total sum of wages. Meanwhile, enterprises and individuals shall bear taxes together. Enterprises'tax rate shall be higher than or almost equal to that of individuals; self-employed people's tax rate shall almost be equal to the sum of tax rate of enterprises and individual. As for peasants, collect tax at a fixed tax rate according to regional income. Tax rates of different regions are slightly different from each other. 6. Collection and management of social security tax (1)Social security tax collecting institutions. In beginning period, it is collected by local tax bureau as local tax category. When conditions are ready, it can be shared by central and local tax collecting institutions, determining...