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Level of efficiency of social insurance contributions of


Level of efficiency of social insurance contributions Summary of the Study: Building a harmonious society is the future for a long period of socialist modernization of China's basic goals, they have Social Security to special social function, plays a special realization of this goal role. Therefore, the current social security system in the presence of some unreasonable problems to be improved. Our industrial enterprises in Tianjin capacity of social insurance contributions, workers pay the Government's financial capacity and the affordability of the empirical analysis, put forward four proposals: (1) lighten the burden of social insurance contributions; (2) individual workers to increase social insurance contribution rate; (3) increase financial input for social insurance; (4) to accelerate the pace of social security legislation, stereotyped as soon as possible to promote the social insurance system. Keywords: social insurance; payment levels; efficiency level of social insurance contributions and financial affordability of social insurance theory and practice is an important content. Determine the appropriate level of social insurance contributions should be considered business and the affordability of individual employees, should also analyze the financial ability to pay. Enterprises undertaken by the amount of social insurance contributions, affecting the operations of the enterprise; personal commitment to social insurance contributions by the amount of impact on living standards. This will be in Tianjin, for example, the level of social insurance contributions of efficiency. First, the current social insurance system's financial plight of the financial as the core organizers of the social insurance funds and the main provider of security, maintaining social insurance system bears major responsibility for normal operation; financial investment and efficient use of social security funds can, the relationship between the future of social insurance. However, my current financial situation, make the existing social insurance system into a formidable financial predicament. 1. The traditional planned economy system theorists of our country's social insurance funds lack of theoretical thinking into economic conditions in Western markets, the main economic activities of society is made up of numerous independent private capital under the guidance of the market mechanism started; as many concentration of private capital on behalf of Western governments, their activities must comply with the requirements of private capital, reflecting the desire of private capital. This will determine the specific content of revenue and expenditure of the West as follows: revenue and expenditure of such social activity is directly based on individual objects and carried out. Government revenue to personal income tax, social insurance tax and property tax, etc, the Government is spending a considerable share of the social insurance directly to individuals. It is precisely because the social insurance funds for personal financial account for a significant share of revenue and expenditure, so the scholars of Western finance theory has long been focusing on the theoretical study of social insurance and social insurance system dedicated to the exploration. Unlike in the West, in the traditional planned economy system, there is almost only of funds belonging to the State does not belong to the individual and the state-run economy, but state-owned enterprises are not independent, only an administrative body appendage. Thus, almost the entire community of production are concentrated in the hands of the state's revenue and expenditure activities of the production itself has the nature of rights owners use their own; their activities are also made directly to the performance of almost all enterprises and institutions, direct the distribution of individual behavior rarely occurs. Thus, the main concern of domestic academia is how to make enterprises the distribution of income and expenditure and a more rational behavior, but rarely close personal contact with the theory of social insurance thinking and attention. Since the economic reform, China's fiscal revenue and expenditure are subject to change although the object and began to focus on the individual's income and expenditure activity; but because of the lack of long-standing requirement of direct personal involvement, influence and monitor policy-making ideas, therefore, whether it is personal or financial theorists, the theory of the social insurance system of thinking and its still appear to be relatively weak, difficult to meet the needs of the existing social insurance system. 2. The existing revenue structure is caused fiscal imbalances of China's social insurance system to analyze the key factors in China's fiscal revenue structure, tax revenue structure should be the main analysis. Tax reform in China since 1994, although the tax burden more equitable, but in comparison with Western countries, the existence of some defects of the new system is still very obvious, to be further improved. Western countries mainly from the personal income tax revenue, corporate income tax, social security tax, inheritance tax and so on. Most countries, social insurance taxes in total tax revenue has played an extremely important position. Western countries, China has yet to levy Social Security taxes, and taxes more easily shift to indirect taxes; direct taxes and direct tax revenue collected from individuals in the small proportion of total tax revenue. Table 1 shows that in our taxes directly to the personal income tax on the proportion of total tax revenue, although the rise, but the proportion is still low. In particular, the modern social insurance system as main sources of funding to implement the social security tax, has not yet been introduced, making China's financial difficult Expenditure requirements but also in other cases increasing, it is difficult to finance most of the funds for personal Social Security, thereby constraining the social insurance system reform. 3. Social insurance contribution rate unreasonable and not uniform, leading to China's social insurance system is another important cause of fiscal imbalances in pension insurance, for example, under the National Development 26) provides: governments. a few provinces, autonomous regions and municipalities because of higher number of retirees, pension burden is too heavy, and where more than 20% of the total wages paid by enterprises, should be reported to the Ministry of Labour, Ministry of Finance for approval. individuals to pay the basic old-age insurance premium ratio I pay 1997 wages of not less than 4% in 1998 increased by 1 percentage point from two years and eventually reach 8% of my salary to pay. to pay is low, the burden of unfairness. According to statistics, the average contribution rate in 2004 reached 27.8%, in some places as high as 30%. Such a high rate over the internationally recognized warning line (20%), apparently at the rate within the restricted area. This can be explained to some extent, corporate behavior to avoid fees. Laffer curve with that (see Figure 1), in the rate range (0.20%), the payment amount increased with the rise in rates; if the rate exceeds the limit the rate of 20% to enter the restricted area, the rate of increase but led to decrease the amount of payment. The existence of these phenomena, not only older workers to individual accounts are empty, and the new individual accounts of employees have been misappropriated funds, generally a personal account of old and new empty account, making the social service workers have been retired and was the implicit debt resistance, increase the risk of social insurance. 4. China's current fiscal expenditure structure is not conducive to the social insurance system to make up for serious fiscal imbalances due to social insurance tax levy is still in the embryonic stage, while social insurance premiums but also by local labor and social security departments, and thus the financial sector is not earmarked for social insurance. At present, China's fiscal expenditure on social insurance is limited to The Expenditure and abroad to form a sharp contrast (see Table 2, Table 3). From Table 2 and Table 3 we can see that China and the United Kingdom's financial expenditure structure has a huge difference. UK budget for social insurance, health and education public spending accounted for metastatic 58.46% of total expenditures; and China for culture, education, health and social welfare spending accounted for only 29.38% of total expenditure. This shows that the UK's financial expenditure structure with a strong performance of the functions of regulating the distribution of income. Because the government's public spending in the transfer of funds occurred primarily in the redistribution of resources among members of society, the British government's public expenditure structure is conducive to a fair distribution of income tend to, and it helps maintain the social insurance system's financial balance. China's fiscal expenditure structure is the allocation of resources to perform the functions of the strong. The Government is actually the product or services directly to the identity of the purchaser in the market, with the funds in its possession and provide other economic agents relative to the exchange of goods or services. Thus, on the one hand that the structure of expenditures for production, employment, resource allocation and aggregate demand has a direct impact; the other hand, expenditure structure, although this can also affect the redistribution of national income, but the impact is indirect. Therefore, China's current fiscal expenditure structure is not conducive to the fair distribution of income. In 2003, a large number of institutional income Gini coefficient can not be reflected in the case of the total urban and rural areas of China's Gini coefficient has reached 0.456, exceeding the internationally accepted warning line of 0.4, the phenomenon of unequal distribution is fairly obvious. Also, because the expenditure structure has the function of regulating the distribution of income is relatively weak, so is not conducive to the realization of social insurance system's financial balance. Second, the social insurance contribution rate of the optimal design - A Case Study (a) capacity of social insurance contributions for social insurance rights and interests of workers, is a part, for enterprises it is a burden. If the business too much burden on the social insurance contributions, will increase production costs significantly. The following state-owned industrial enterprises in Tianjin, for example, inspection companies bear the burden of social insurance payment capacity. According to the state-owned industrial enterprises in Tianjin, the general financial condition, ex-factory price of products in the enterprise, about 39.4% or so to add value. This means that the product ex-factory price of 100 yuan, an increase is 39.40 yuan. According to Cobb - Douglas production function, you can return the new value-added elements of labor and capital elements of the contribution rate. Cobb - Douglas production function: Y = ALαKβ where, Y is output, L is the labor factor inputs, K factor inputs of capital, α and β represent the output elasticity with respect to labor input and capital input flexibility. Against the number on the type of transformation can be obtained: LnY = LnA αLnL βLnK using Table 4 from 1991 to 2003 the state-owned industrial enterprises in Tianjin, labor wages and capital spending and industrial output data, you can return to the labor factor, respectively, and capital factors contribution rate. LnY = 7.4269 0.7709LnL 0.0896LnK (6.9881) (5.5064) (0.4522) R2 = 0.9844 F = 315.2639 P = 0.0001 The above analysis shows that 77% of value-added products added to cover wages, 8.96% for return on capital. This means that the additional bonus of 39.40 yuan, a 30.30 yuan to cover wages and capital return of 3.50 yuan. From international experience, capital costs (such as depreciation and the cost of loan capital) accounts for 40% return on capital. Therefore, return on capital of 3.50 yuan to 1.40 yuan in capital costs alone, and the remaining 2.10 yuan to corporate profits. Only state-owned enterprises 2.10 yuan profits, if all used to pay social insurance premiums, only about 7% of total wages, which is the upper limit corporate contributions. Through the above analysis, the Tianjin State-owned industrial enterprises to co-ordination of social security contributions under the maximum limit of 7%. However, in reality, companies have to pay 20% of total payroll pension insurance, medical insurance premiums of 8% and 2% of the unemployment insurance, maternity insurance premiums of 1% and 1% of the work injury insurance. Therefore, enterprises have to bear a total of 32% of total payroll of social insurance. This ratio than the maximum fee businesses can afford more than 4 times higher than the limits, businesses bear the burden. (B) the ability of individual workers of social insurance contributions in determining the level of social insurance contributions, should consider the capacity of individual workers. Part of the income of workers for current consumption, part of the formation of savings for long-term consumption. Compulsory social insurance contributions in a sense, employees perform the function of savings. Suppose the social insurance system in the individual contributions to B, individual current consumption for the C, c the marginal propensity to consume for personal, C0 to not change with income, a stable consumption, wage income of individual Y,[link widoczny dla zalogowanych], then the long-term consumption YC. According to Western economic theory, consumption formula is: C = C0 cY assume all the savings of workers are used to pay social insurance premiums, the rate of: B / Y = (YC) / Y = (Y-C0-cY) / Y = I-C0/Yc If you find the c, C0, and Y, can determine the employee contribution rate (B / Y) of the ceiling. Below in Table 5 in Tianjin from 1991 to 2003 and per capita annual income per capita consumer expenditure data, on the C = C0 cY-type regression analysis can be obtained: C = 295.2517 0.7353Y (5.0090) (83.6617) R2 = 0.9984 F = 6999.28 P = O.0001 different years as per capita income and per capita consumption expenditure is the change, so the individual to bear the maximum payment of social insurance is different in different years. The results of the regression equation substituted into B / Y = (YC) / Y = (Y-C0-cY) / y, we obtain individual workers from 1991 to 2003 for the payment of social insurance can bear the maximum: 1991 11% to 24% in 2003. According to the provisions of Tianjin, personal pension insurance contribution is 8% of total wages; if coupled with health insurance in the individual contribution rate of 2% and 1% of unemployment insurance in the individual's contribution rate, a total contribution rate of individual workers 11%. Same as in 1991 this proportion, but far less than 24% in 2003, indicating that 11% of workers fully able to withstand the social insurance contribution rate. (C) of the growing trend of financial capability in Tianjin Western countries the proportion of GDP, fiscal revenue up 35% to 50%, thus supported by solid financial strength, developed countries account for expenditures for social insurance, government expenditure, 20 % compared with 30% of Tianjin's financial ability to pay is very limited, in Tianjin in 2003 the proportion of revenue accounted for only 18% of GDP. The financial capacity to support social insurance funds is based on the level of national economic growth, therefore, use the following growth rate of GDP growth and fiscal revenue ratio as a function of time, forecast 2005 to 2010 the ratio between the two trends. Suppose Y is GDP growth rate of fiscal revenue growth rate and the ratio, t is time serial number. The data in Table 6, we have the following equation: Y = 1.3844 0.0249t can be calculated according to the above equation from 2005 to 2010 revenue growth rate and GDP growth trend of the ratio is: 1.68,1.73,1.78,1.83,1.88, 1.93. If the GDP of Tianjin from 2005 to 2010 to maintain the growth rate of 12% (nearly 10 years the average growth rate of GDP of Tianjin), you can measure the same period the average annual growth rate of fiscal revenue, and thus can be calculated from 2005 to 2010 in Tianjin the size of city revenue. If the social insurance subsidies to maintain financial growth and GDP growth at the same speed, with an annual revenue of 12% for social security benefits, you can calculate the final fiscal 2005 to 2010 the financial resources for social security benefits (see Measuring Results Table 7). That is, Tianjin Finance for financial support for social insurance can keep 18% of the average annual growth rate. Third, the brief conclusion 1. Corporate social insurance contributions from the burden of a serious emphasis on the specific measurement results, the state-owned enterprises pay social insurance contributions far beyond the corporate limits of the highest bear. In the long run, enterprises are unable to afford the fee level, which is now many state-owned enterprises evasion resulting in the main collection rate year by year. Therefore, it is necessary to reduce the state-owned enterprises in the social insurance contribution rate, reducing the burden of state-owned enterprises in order to achieve the smooth progress of the purpose of state-owned enterprise reform. 2. Individual workers social insurance contribution rate is relatively low compared to the current personal contribution rate of payment capacity of individual workers is a relatively low level, in fact, a few percentage points to further increase the contribution rate, individuals also can withstand The. Therefore, you can personal contribution rate in the same premise, to improve the proportion of individual contributions and the payment of the total increase for social co-ordination. On the one hand reduce the contribution rate can make up to form the gaps; the other hand, also reflects the social insurance nature of social and economic nature of each. 3. From the current view of China's social security system, social co-ordination part is used PAYG financing mode. This model means that the government responsibility for social insurance benefits the final burden. Therefore, contributions to lighten the burden and improving their level of individual contributions, after which the social pooling fund balance of payments gap, the Government must be made up of financial resources. However, from Tianjin in recent years, various types of financial capital spending growth rate, used for local construction, science, education, administrative and other costs of rapid growth, the level of social insurance subsidies for low (see Table . I believe that the need in the future growth of revenue from the fiscal section set aside special funds for social insurance expenditures, but also important to adjust the fiscal expenditure structure, the compression over-investment and excessive growth slowing operating expenses, the savings funds for social insurance benefits. 4. To accelerate the pace of social security legislation, stereotyped as soon as possible to promote the social security system social security system reform in China has gone through stages of exploration and repeated need to shape as soon as possible; and stereotyped and institutional arrangements, whether national, corporate and individual pay charge ratio, or the social insurance funds, investment range, must be to improve the effectiveness of the existing system and to accelerate through the social security legislation as a prerequisite. In improving the effectiveness of the current system, almost all the existing system required effort. Such as basic pension insurance needs as soon as possible forward to the National Co-ordination; health insurance coverage needs of all workers as soon as possible; maternity insurance need to be rebuilt; minimum living need to be integrated into social assistance mechanisms; the social welfare officials and the public need to take the integration path of development; and so on. The only way to design a more reasonable payment of social security programs, the community, the proportion of businesses and individuals pay more reasonable and improve the efficiency of China's social security contributions. In short, social security and social harmony is a positive correlation between building a harmonious society is inseparable from social security. China must establish a sound, comprehensive social security system, and through the system to resolve many social problems in reality, to meet the growing needs of the national welfare. A sound social security system, complete and up to a harmonious society in China will be an important symbol forward.