Recently, "tax cut" has become a hot topic among entrepreneurs. Almost all of them believe that what China should do now is "massive tax cut".

"Tax cuts" are getting louder
But the news of the tax cut has yet to come.
The cost of corporate social security could rise by another 30 percent from 2019
Soon there will be a big change in social security: it will be handed over to the tax authorities. According to the reform plan of national tax and local tax collection and management system issued by the central government and the state government, from January 1, 2019, the basic endowment insurance premium, basic medical insurance premium, unemployment insurance premium, work-related injury insurance premium, maternity insurance and other social insurance premiums will be collected by the tax authorities.

Expert analysis, this will substantially reduce the enterprise not pay all, not on time, not full amount of social insurance premiums and other non-compliance behavior, to fulfill the legal obligations of social insurance payment.
However, according to the white paper 2017 on social security of Chinese enterprises released by 51 social security, the largest third-party professional institution in China, only 24.1% of enterprises have a fully compliant social security payment base. Low social insurance premiums even became an open "secret" in the industry.
So, below the setting that a lot of enterprises fail on time and full amount pay social insurance cost, collect uniformly by tax branch hind, what circumstance can these enterprises face? Wang dehua, a researcher at the institute of financial strategy at the Chinese academy of social sciences, said he roughly estimated the policy would increase costs for companies by at least 30 percent.
Seeing this, many friends can't help asking xiao rui curiously: "although the cost of corporate social security is rising, it should be good for corporate employees, right?"
Let's calculate a sum of money first. Take Shanghai as an example, where "five social insurance and one housing fund" individuals pay 10.5 percent and enterprises 31 percent, a total of 41.5 percent. That is to say, starting from January 1, 2019, an employee with a salary of 10,000 yuan will have to pay 1,050 yuan for the individual and 3,100 yuan for the enterprise, a total of 4,100 yuan. In fact, an employee who hires 10,000 yuan can only get 8,950 yuan on the day he gets his salary, but the company has to pay 13,100 yuan for the labor. The difference of 4,150 yuan was taken away.
On closer inspection, the bill is terrible.
The social security cost of enterprises will definitely rise next year, which will increase the burden on enterprises, and may further aggravate the survival risk of those small and medium-sized enterprises whose lives are on the line. Therefore, many employees will have to experience the psychological gap of reduced wages next year.
On sina.com: "big infrastructure, big tax cuts, who do you support?" Nearly half of those who voted explicitly support tax cuts.
Tax cuts can help unleash reform dividends for China's economy and help the country move out of an increasingly short cycle.