The Rational Thinking Of Levying The Social Security Tax In China

Social security was produced when industrial development reached a certain level. It isestablished by the government according to low, through stabilizing, adjusting, promoting,mutual assistance and aid and other multiple functions to secure and improve people’s livingstandard, the enhancement of national welfare will finally realize the harmoniousdevelopment of the whole society. In modern society, social security is playing an importantrole in securing market economy and accelerating economic development, so that it is called"the stabilizer for social development, the damper for economic running and conditioner forsocial fairness". China has gotten historic achievements in social security through nearlythirty years’ development, a framework of social security system with Chinese characteristicshas been basically completed, and China has initially finished the institutional change.However, there still are many problems in China social security system, especially, thedeterioration of fund demand-supply contradiction has become the key restrictive element ofsocial security development in China. Therefore, as the basis and starting point of the wholesocial security system’s smoothly running, fund raising is a severe research topic and commonconcern for all the countries who has established social security system.This paper integrated many research methods like literature investigation, comparativeanalysis, questionnaire and analytical and empirical analyses. Supported by basic theory ofsocial security tax and fair theory, started with the international comparison of social securityfunds patterns, the first part comparatively analyses the concrete implementation measuresand administration and running conditions of foreign social security funds raising, definitesthe superiority of social security taxes in funds raising and finds the legitimate mode of socialsecurity funds raising of China. Then, the paper analyses the basic conditions and obstaclesfor China to begin to levy social security taxes and gets the conclusion that our country hasnot the conditions for levying the social security tax though it is a trend in the world. Finally,it gives some countermeasures to the questions according to the situations of China and therelevant matching policies aiming at creating positive conditions and speeding up the levyprocess of social security taxes.