The Impact Of Social Security Contribution Burden On "Shifting From Real To Virtual

The construction and development of the social security system has always been an important issue for the Chinese government.With the reform of the social security system,the efficiency of social security collection and management in China has been gradually improved.Although tax reduction and fee reduction policies have been implemented in recent years,the tax burden borne by enterprises is still relatively heavy.The higher social security contribution rate in China will bring some negative impact on the competitiveness of enterprises,and due to the increase of tax burden,the investment of enterprises in manufacturing and other industries has shown signs of "rapid decline" and "shifting from real to virtual".The 19 th Party Congress report pointed out that China is proposing to establish a modern economic system and must focus on economic development on the real economy.The development of the real economy plays an important role in promoting China’s economic growth,and if there is a tendency for entity enterprise to shift from real to virtual,it will have a negative impact on the development of China’s industry.Therefore,in this context,it is of great importance to study the impact of social security contribution burden on "shifting from real to virtual".This paper adopts a research method combining theoretical analysis and case study.Firstly,by combing the relevant literature on social security contribution burden and enterprise’s shift from real to virtual,the concept and theoretical basis of social security contribution burden and enterprise’s shift from real to virtual and the mechanism of action between the two are clarified.Secondly,introduce our present social security payment burden and reality to virtual status quo.Then,Ningbo Yunsheng is selected as a case enterprise to introduce its social security payment burden,industrial investment and financial investment from 2011 to 2021,then through the social security contribution burden to affect the enterprise from real to virtual path to study Ningbo Yunsheng,and analyze the performance of its transition from real to virtual,and study the economic consequences caused by its transition from real to virtual.Finally,conclusions and suggestions are drawn.In this paper,we find that the social security burden faced by Chinese enterprises is always heavy.As a component of labor cost,social security contribution burden will negatively affect enterprise investment decision through industrial investment return rate,cash flow and profit level,and through the positive influence of capital-labor ratio and human capital on investment decisions.And the negative effect is greater than the positive effect.Therefore,under the influence of social security payment burden,enterprises may be more inclined to choose financial investment rather than industrial investment,and gradually deviate from the main business,resulting in enterprises from real to virtual,which is not conducive to the long-term development of enterprises in the future and the construction of China’s real economy.Based on this article,the following suggestions are obtained: For the government,it should continue to adhere to the policy of tax reduction and fee reduction,guide enterprises to take a correct view of social insurance premiums,expand the financing channels of enterprises,solve the financing difficulties of small and medium-sized enterprises,strengthen the system construction and regulatory accountability system,and create a good business environment for enterprises.For micro enterprises,enterprises should take the development of industry as the first priority and avoid excessive financialization.In addition,enterprises must clarify the role of financial assets in the process of enterprise development and avoid the decline of financial performance caused by investment for profit.