Analyzes of International Social Security System and Discussions on Perfecting Chinese Social Security System Especially for State-Own Incorporations

One of the pivotal factors that lead to the lacking of breaking though in reformation of Chinese state-own corporations are the following: the social security system has not been stroke up in the light of international routine and accordingly not been bringing into play of its own. The defects of current Chinese social security system can be collectively represented by several problems, such as low percentage of benefit coverage in population, low degree in socialization, heaven burden on enterprises, incompleteness of jurisprudence, all of which have been hampering the transition from corporation liability into social security. To address these problems, we first analyzed international experiences in the social security taxation system. By comparison of the social security systems in China and in western countries, we found that the major problem existing in China is a lack of legislation system. Then we argue that policy makers should take reference from successful experiences in developed countries and put effort on system innovation. Moreover, we proposed social security taxation through legislation as on of the functional solutions to improve current social insurance system in China with an endeavor in deducting burden from state-own corporations. We further discussed in detail the suggestions on how to set up an appropriate social security taxation system and potential problems we might encounter.