Study On Tax Policy Optimization Of Chinese Tax-Deferred Commercial Endowment Insurance

The average life span of our population has been extended continuously due to the reform and opening up,medical and health undertakings,and the enhancement of people’s material life standard;however,the population aging situation is becoming increasingly dire.How to guarantee retirement life and improve the quality of life after retirement has become one of the topics that the government focuses on.As the first pillar of our endowment security system,the basic endowment insurance,its replacement rate is decreasing year by year,and it can not meet the increasing material and spiritual needs of people.However,as the second pillar,the enterprise annuity and occupational annuity system are difficult to popularize and have very low coverage.They are only reserved for employees of public institutions,large and medium-sized state-owned enterprises and a few private institutions with excellent welfare benefits,and are not inclusive.Therefore,in order to vigorously develop the third pillar commercial endowment insurance and respond to aging crisis actively,our country government introduces the personal income tax delay type commercial endowment insurance which has favorable tax policies to support.By buying this product,policyholders can obtain tax benefits on the one hand,and on the other hand,they can save their own personal pension to protect their standard of living in retirement.On the basis of introducing related concepts and theory,this article points out problems in personal income tax delay policy through introducing pilot implementation of Chinese commercial pension insurance.Next,by constructing a tax optimal policy model,the pilot individual tax deferred policy is evaluated from the perspectives of pension replacement rate level and tax expenditure,and the calculated results are compared with the set ideal level.There are two main aspects in the analysis.One is to calculate the pension replacement rate of different income groups,different gender and age structure of policyholders to see whether it reaches the ideal level set in this paper.The second is to calculate the tax expenditure generated by the individual tax deferred policy,that is,the tax cost paid by the government.Within the range of reasonable tax cost and reach the ideal replacement rate level of individual tax deferred policy is the ideal tax preferential policy.The analysis found that in 2018,the pension replacement rate of individual tax deferred commercial pension insurance in pilot areas was far from the ideal level,and could not play a role in improving the quality of retirement life.In 2008,the replacement rate in the pilot area reached an ideal level,but the tax cost far exceeded the reasonable range,so the two trials were not ideal.At the same time,it further analyzes the role that individual tax deferred commercial pension insurance can play under the support of new tax incentives.During the research process,it is found that the pension replacement rate is inversely proportional to the wage growth rate,so as to conclude that under the current situation of slow economic development,The new tax preference policy can make the replacement rate of individual tax-deferred commercial pension insurance reach an ideal level under reasonable tax expenditure.Moreover,it is further found that the replacement rate of pension insurance is also affected by many factors,such as income level,contribution years,gender,etc.Among them,the replacement rate of older low-income groups is higher,while that of young high-income groups is lower.At the same time,based on the calculation process and the advanced experiences of other developed countries,this paper puts forward some suggestions on optimizing the personal income tax extension commercial pension insurance.For example,extending policy benefits to non-tax paying groups;Set a pre-tax deduction ratio dynamically linked to the wage growth rate;Improve the tax incentives for older policyholders and relax the pension conditions.It hopes to improve the coverage rate and the replacement rate of the personal income tax extension commercial pension insurance,and improve the multi-level pension insurance system and cope with the aging trend of the population.