The Research On The Social Security Funding Pattern

The Social Security System is a social vibration isolator and safety net. With further deepening the market economy reform, its status and functions are becoming more and more outstanding. However, there do exist some problems in our current System—low coverage of social security system, disparate development, and uncertain legal system on social security, especially the limited social security funds. So, to establish stable and reliable social security funding mechanism, and ensure the sustainable growth of social security funds are the key to improve our social security system.Considering the difficulty to raise the security funds, low socialization and poor management, on basis of the successful fund-raising experience in foreign countries we should reform the social security fund-raising mechanism and transform levying administrative fees into levying taxes to improve our social security system.The Social Security Funds allocated by the government through the social security taxes shall be the main financial tool to support the national Social Security System and its basic framework. The social security funds shall be orbited into the national budget management by means of social security taxes, which will be of benefit to change government function, change the enterprise management mechanism, and straighten out relations between government and enterprises. Also, the social security taxing could be beneficial to spend the social security fund in fair, reasonable ways, and guarantee that the funds are used for the designated purposes only.Based on analyzing the issues existed in our current social security funding system and learning from the successful experiences on the social security funding pattern in foreign countries, this paper analyzes the feasibility and necessity of levying social security taxes, and discusses the issues occurred during the design and operation of our social security taxing system.