Theory Of Levying Social Security Tax And The Tax System Design In China

Since the establishing of the socialist market economic system,the social security system, that people participate in social security by paying social security contributio ns, aims at adapting to China’s economic development level and social development s ince the establishing of the socialist market economic system. This system played an i mportant role in the early time. It not only provides the implementation of the social s ecurity system in our country with abundant capital support, but also brings most of t he residents into the social security system, to enjoy the benefits of national social sec urity. Therefore, the payment form of the social security system has great significance in promoting social justice, improving people’s living standards and social security s ystem.But after 30 years of reform and opening-up with rapid development of economy, China has gradually entered the new normal, that economic growth is slowing, and momentum appears insufficient. One of the main problems is that the demographic di vidend is gradually disappearing because of an aging population. In order to cope wit h that situation, China needs to rely on a strong social security system, to provide effe ctive social protection for the elderly population. Nonetheless, the current payment fo rm of the social security system cannot adapt to the demand for social security under the new normal circumstances.This forces us to explore a more suitable security system considering our countr y present stage. Social security taxes, a common practice in developed countries of th e social security fund-raising system have an incomparable advantage to social securit y contributions. It is more suitable for China’s current economic development situatio n, and able to deal with the problem of an aging population with powerful social-secu rity funding.This paper will mainly research the theoretical basis of levying social security tax in China and design of the social security taxes system. This paper is divided into six chapters: the first chapter is introduction,and it describes background and significance of this research,and collates the domestic and foreign research results for social security taxes,and expounds research methods, innovation and inadequate in this paper;the second chapter is the overview of relevant theories of social security taxes;the third chapter mainly analyzes the status quo of China’s current social security fund-raising as well as the existing problems that it has;The fourth chapter analyzed the feasibility and necessity of levying social security taxes in China;The fifth chapter will analyze the social security tax collection experience of developed countries by cases analysis;the sixth chapter will put forward some ideas to perfect the design of the social security taxes system and supporting measures.