Research On The Impact Of Fiscal And Tax Policies On The Development Of Pension Service Industry

With the development of social economy and the improvement of living standards,the average life expectancy of the people has been extended.With the continuous decline in fertility,population aging has become an urgent social topic.Under the influence of China’s historical and traditional concepts,in order to fulfill their filial piety,most elderly people support themselves at home.Due to the implementation of the family planning policy,the main body responsible for supporting the elderly is currently the only child,and the pressure on one child to support two elderly people is increasing.The elderly care model of relying solely on home based elderly care is not only unable to respond promptly to the physical health problems of the elderly,but also lacks higher level facilities and services to meet the multi-dimensional elderly care needs of the elderly.Therefore,the diversification of elderly care services has become a topic of widespread concern.The country,society,families,individuals,and others are the main responsible entities in the context of the aging population.To effectively solve the population problem,they need to complement each other and jointly support the coordinated development of the elderly care service industry.The government,as the administrator who occupies part of social resources and participates in the distribution,is "duty-bound" in using fiscal and tax policies to ensure the efficient development of the elderly care service industry.Currently,The aged care services sector is still in its infancy and is experiencing growth challenges.The main reasons are: First,the population is aging seriously,and the pressure on future generations to provide for the elderly is high.Middle-aged people must simultaneously cope with the pressure of aging at the bottom and upper levels,and face difficulties in coping with work,housing,and raising children at the same time,leading them to neglect the care of the elderly.The practical problem of having middle-aged people over 60 take care of elderly people over 80 years of age will accompany the extension of life expectancy.The second is insufficient pension reserves.In recent years,the pension substitution rate has decreased,and there are specific obstacles in the collection,distribution,and investment of pensions;The third is the extreme lack of elderly care institutions with high service levels.The type of home based elderly care services is single,and the development of community based elderly care services is lagging behind.Pure private elderly care institutions often have high costs,and only provide pure physical care services,without providing mental health services.The relatively high proportion of community based elderly care models is far from constituting a development system.Fourth,supporting measures to jointly address aging,such as encouraging childbearing and delaying retirement,are weak,the legislative level of supporting policies is low,fiscal policies are lacking and lagging,and the coverage of tax policies is insufficient.In general,the supply and demand side of the elderly care service industry involves a wide range of subjects,and the types of services are complex,resulting in poor results in the implementation of existing fiscal and tax policies and the development of elderly care services.A slight carelessness will lead to weak implementation and practical problems that become mere formality,making it difficult to achieve the expected effect of using financial funds,leading to the challenge of achieving the "last mile" of equalization of elderly care services.Based on this,this article first expounds the relevant concepts of tax preferential policies for the elderly care service industry,draws on the theoretical basis of public product theory and welfare pluralism theory,analyzes the necessity of government participation in the construction of the elderly care service industry,and explains the mechanism of fiscal and tax policies on the development of the elderly care service industry from the perspectives of fiscal investment policies,fiscal subsidy policies,tax substitution effects,and income effects.Secondly,on the one hand,it analyzes the overall development status of China’s elderly care service industry from the perspective of supply and demand structure,internal structure,and development scale.On the other hand,it summarizes and sorts out the fiscal and tax support policies for promoting the development of the elderly care service industry in China in terms of the scale of fiscal expenditure and directly and indirectly related tax incentives.Through sorting out,it is found that the fiscal and tax policies related to the elderly care service industry in China have problems such as insufficient spending,weak policy enforcement,and incomplete tax incentives that focus on income tax.Using relevant data from 31 provinces from 2010 to 2020,and using panel data analysis methods,this paper empirically examined the impact of fiscal and tax policies on the development of the elderly care service industry by establishing a two-way fixed effect model.The empirical study mainly found that the government can effectively promote the development of the elderly care service industry by increasing fiscal and tax expenditures,and reducing tax burden can also play an incentive role.Finally,based on previous studies and in combination with China’s specific national conditions,this paper proposes corresponding suggestions for improving fiscal and tax support policies to promote the development of the elderly care service industry,mainly including: clarifying the financial expenditure responsibilities of the elderly care service industry,designing a complete tax preference system,and reasonably exerting the role of turnover tax.