Research On The Feasibility And Policy Of Levying Social Security Tax In China

The social security system had been appeared while productive forces developed into some sort of level, which marks the progress of economic society. A perfect social security system will let people enjoy the basic living needs without worries behind, but also propel the overall pattern of social benefits to keep optimizing. Since China carried out the social security system, it has initially established the relevant system which concentrates on the overall planning at the provincial level.In China, the current fund raising system for social security had been built and developed under the 1905s planned economic system, and played a key role in that time.For adapting the new trend of the reform and opening-up policy and socialist market economy, the governments has adjusted the fund raising ways of social security many times. Unfortunately, the social security fund still faces several issues, such as the narrow capital source channel, misappropriation or diversion happening occasionally, and unsound system of preserve or increase the value. With the competition of market economy get fierce, and entering into aging society, the expenditure of Chinese social security fund increase day by day. And combined with the unemployment and retirement issues, the government must explore new way for reforming and improving the fund raising system for social security as quickly as possible.Based on that, collecting social security tax in good time will resolve the current issues introduced by current payment system of social security, as well as the inevitable choice which complies with the historical development trend. In this important stage, the government should take its responsibilities seriously, and try to create conditions to carry out the taxation for social security actively.The social security tax is special tax which is proposed for raising enough fund for social security. This kind of taxation had been used in many countries. Since the reform and opening-up is over thirty years, China has the general conditions to carry out the taxation for social security. This article will introduce the information aboutsocial security tax in advance, including its basic definition, development history, advantages and theoretical basis. Then, it will demonstrate the necessity and feasibility about the taxation for social security in China, and what problems will meet after fully analyzing the development of social security tax in developed and developing countries. From a government perspective, it will propose that how to arrange the overall system for social security tax, and consider how to connect with other systems when carried out the social security tax.