All people pay in China: five insurances and one gold is tax refund feasible?

category:Finance
 All people pay in China: five insurances and one gold is tax refund feasible?


It can be seen that the so-called nationwide money distribution plan is not a one size fits all cash subsidy for domestic residents and their families, but a tax return based on the taxpayers personal tax declaration information system, which is mainly reflected in the following two aspects:

On the one hand, it reflects the contractual relationship between the people and the government. In particular, the tax revenue structure with direct taxes such as personal income tax as the main body determines that this government and people constraint is strong and enforceable. Affected by the epidemic and faced with such thorny problems as income reduction and living standards reduction, the government has the responsibility to provide some assistance from the peoples previous direct tax contributions to fulfill their tax commitments.

First, the source of funds for tax return is insufficient. For a long time, Chinas tax system structure is dominated by indirect corporate tax, and the contribution of household direct tax is relatively small, and almost none. Even for the salary income which accounts for the largest proportion of family income, the individual income tax paid every month is mostly withheld and remitted by the enterprise as the withholding agent. It is almost difficult for the individual residents to form an intuitive tax consciousness and concept, resulting in the lack of targeted tax return. At that time, the peoples desire for cash assistance is no different from wishful thinking.

Secondly, the information of residents tax declaration income is insufficient. At present, Chinas personal income tax information system is not perfect, and the settlement of individual income tax for individual comprehensive income of residents is still in the first experimental stage. The mechanism of individual income tax declaration based on family has not been established, and it is difficult to effectively and accurately identify the middle and low-income groups. In this situation, even if the government issues cash to the people, its fairness is difficult to guarantee, resulting in new distribution Uneven, contrary to the original intention of policy implementation.

So, apart from the tax return based on individual income tax declaration, is there no other way? In my opinion, only for the assistance of enterprise employees and their families, the return plan of five insurances and one fund for residents is worth exploring and trying.

First, five insurances and one fund shall bear the natural responsibility of residents assistance. Five insurances and one fund in China generally refers to the endowment insurance, medical insurance, unemployment insurance, work-related injury, childbirth (referred to as five insurances) and housing reserve paid by employers and employees of enterprises in accordance with a certain proportion based on the total wages of employees in accordance with the labor contract law, social insurance law and its implementation rules, as well as the regulations on the administration of housing fund and other relevant laws and regulations Gold (hereinafter referred to as one gold). The original intention of the social insurance system represented by five insurances and one fund is to protect the social security right of the residents themselves, that is, the government subsidies that the residents and their families can maintain a certain income under the conditions of disease, work injury, unemployment, childbearing and old age. In exchange for the governments equal share of subsidies, residents and their enterprises must transfer social security tax, that is, five insurances and one fund.

Second, five insurances and one fund has the corresponding relationship of responsibility and benefit, and is obviously similar to the direct tax attribute. Although the academic circles often regard five insurances and one fund as government charges, its duty bearers are enterprises (employers) and their employees (employees), and the insured can enjoy the corresponding rights only when they perform the relevant obligations and pay the corresponding costs. Generally speaking, it is pay more, pay more, pay more. The incentive of its tax return is quite obvious. In 2018, social insurance levy was classified into tax department by social security department, and the levy intensity of five insurances and one fund was further highlighted. In addition, the degree of legalization in the aspects of levy proportion adjustment, budget, central and local division, etc. was continuously improved, and the nature of Taxation gradually emerged. On the whole, five insurances in five insurances and one fund is similar to the international general social security tax (also known as payroll tax), which belongs to the institutional transaction cost borne by employees and enterprises, and has become the largest direct tax next to the value-added tax revenue in China.

Third, the collection information system of five insurances and one fund is becoming more and more perfect. With reference to the national economic and social development statistics bulletin 2019 issued by the National Bureau of statistics and the national housing fund 2018 annual report issued by the Ministry of housing and urban rural development and other ministries, by the end of 2019, the number of insurance participants of urban employees in China, including pension, medical care, unemployment, work-related injury, birth and so on, respectively reached four point three four Billion three point two nine Billion two point zero five Billion two point five four Billion two point one four Billion, 2018 national housing fund The number of paid in employees also reached one point four four Billion. In addition, at the end of 2019, the number of social security card holders in China also exceeded 1.3 billion, covering more than 93% of the population. The card contains data such as the insured base, time and amount of five insurances for employees, which can provide support for the partial return of five insurances and one fund for employees.

It is undeniable that in the process of promoting the five insurances and one fund partial return scheme for employees, there are still constraints in the relevant settings of the five insurances and one fund system in China, which need to be improved at the following levels.

First of all, simplify the examination and approval procedures for receiving unemployment benefits and guarantee the insurance benefits for the unemployed. At present and in the future, the unemployment of urban workers may occur frequently. The unemployment insurance paid in advance by enterprises and workers needs to give full play to its functions in time. When the unemployed receive unemployment benefits according to regulations, the approval procedures of social insurance agencies should be simplified, and the network operation should be adopted as far as possible to improve the service awareness and level of agencies, so as to facilitate the unemployed groups to enjoy unemployment insurance benefits in time.

Secondly, relax the extraction standard of housing fund and implement the rights and interests of employees. The driving force of the constant growth of consumption lies in the continuous improvement of residents disposable income. At present, the wage income of urban residents is affected by the epidemic to some extent, which has a negative effect on consumption. Therefore, as the mandatory savings of housing provident fund, the handling department should adopt a more flexible extraction standard, respect the willingness of individual owners of housing provident fund, and choose this long-term housing savings to become the current consumption cash, so as to provide a source for the continuous burst of urban consumption demand.

Third, open up the personal accounts between medical treatment, endowment insurance and housing accumulation fund to adjust the surplus and deficiency. Different groups of people have different effects on medical treatment, pension, housing and other aspects, and the matching funds should also be different. However, various types of social insurance and housing accumulation fund are divided and controlled and placed in the corresponding accounts, and they cant communicate with each other, which results in serious or few funds in the corresponding insurance accounts of individual residents. Therefore, try to integrate the amount of idle individual insurance accounts, and the insured can allocate the corresponding account funds according to their own needs, which is not only conducive to the improvement of the use efficiency of five insurances and one fund, but also conducive to the protection of the rights and interests of the insured.

Finally, gradually liberalize the household registration management and replace it with the social security card based on Residents five insurances and one fund and personal tax declaration information. In China, five insurances and one fund and individual income tax are the most real and direct embodiment of the interaction between residents and the government. Compliance and full payment of five insurances and one fund and individual income tax are the preconditions for residents to enjoy local public services and products, and also the responsibility of the government to provide public products and services. Five insurances and one fund and information of individual income tax declaration and payment have become an important part of local and even national governance system. Therefore, it is necessary for the public sector to improve the electronic level of such tax payment information, especially to expand the household registration management function of social security card, so as to realize convenient and effective transfer and connection nationwide, and provide convenience for taxpayers and insured to enjoy the public products and services in the region. (author Zang Jianwen is a teacher of Hebei University of finance, Ph.D. in Economics) source: surging news editor: Yang Bin_ NF4368

(the author Zang Jianwen is a teacher of Hebei University of Finance and a doctor of Economics)