Research On "Fee Change Into Taxation" Of Social Security Financing

With the aging of population in China,the proportion of pension and medical expenditure in the field of social security will gradually increase.However,the shortcomings of the current financing mode of social security funds make the corresponding sources of social security funds cannot increased correspondingly,which makes it urgent to solve how to guarantee the sources of social security funds.In the report of the 19 th National Congress of the CPC,it is clearly pointed out that we should strengthen the construction of the social security system,and one of the keys to establish a perfect social security system is the financing system of social security funds.There are two modes of social security fund-raising: tax collection and payment system.Because of the different nature of fees and taxes,these two modes of financing have their own characteristics.Payment system is mainly used by enterprises and individuals to pay social insurance premiums,with insurance-related nature;and the tax system mainly by the state through the establishment of a legal system of taxation,in the form of social security tax levy,with the relevant nature of taxation.At present,most countries in the world adopt the tax system.Currently,the social security funds are financed by the payment system in China.This paper takes Henan Province as an example to list the five basic social insurance payment groups and the basic rates.At present,a few drawbacks still exist in the financing of social security funds in China.Firstly,the scope of coverage is small,and the awareness of pension payment is weak in many areas,especially in rural areas.Secondly,the level of social security co-ordination is low and the development of social security is not balanced throughout the country.Thirdly,the collection departments of social security are not unified and the rigidity of collection is insufficient.Therefore,funding gap is increasing gradually.This paper analyzes the necessity and feasibility of implementing the "fee to tax" in the implementation of social security financing in China.The introduction of social security tax can enhance the rigidity of the levy,stabilize the sources of social security financing,and improve the overall level of social security,conducive to the long-term development of the social security system.With the economic and social development of our country,the social and economic conditions for levying social security tax have already been established.And the reform of the levy and management system has laid a good foundation for levying social security tax.Drawing lessons from social security tax system of the United States and Britain,some basic principles are designed for Chinese social security's "fee to tax" reform.Finally,according to the principle of shifting the burden and slightly decreasing the burden,the basic elements of social security tax are designed.China's social security tax should eventually achieve universal coverage.At present,we should focus on increasing the coverage ratio of the rural population.First of all,pension,medical insurance should be included in the scope of tax reform.The tax rate should first shift the current burden ratio of social security premiums,and then reduce the burden after the implementation of the tax base.In order not to increase the low income,the social security tax should be levied at the starting point and be reduced or exempted from taxation for the burden of the population.The social security tax should be levied by the tax authorities,just like other taxes.