The forthcoming two sessions will lay the foundation for the "Twelfth Five-Year Plan". At this time, it is timely to revisit the development of private enterprises. According to reports, the National Federation of Industry and Commerce will propose 19 group proposals, including issues such as difficulties in financing private enterprises, heavy tax burdens, and the elimination of monopoly and improvement of industry development policies. The proposal disclosed by the National Federation of Industry and Commerce shows that China's current social security premium rate is more than 40%, higher than that of developed countries. In the higher social security rate, the proportion of corporate contributions is too high, which makes the enterprise overburdened. The National Federation of Industry and Commerce recommended that the government increase investment and reduce the rate of corporate contributions. The National Federation of Industry and Commerce proposed that the threshold for the business tax of individual households should be substantially increased. China's economic transformation involves the transformation of fundamental systems such as the fiscal and taxation system. At present, China's SMEs are in the midst of a period of transformation, and inefficient enterprises are eliminated. People have nothing to say. If strict taxation makes most SMEs survive, it will shake the country. China's private enterprises are more efficient than state-owned enterprises. If there are no efficient private enterprises, Chinese state-owned enterprises will be vulnerable, and they will lose the source of income and the source of income. The overall tax burden of SMEs is not lower than that of state-owned enterprises. Due to discrimination in loans and other aspects, the hidden costs are much higher than those of state-owned enterprises. Since state-owned enterprises monopolized the upstream pricing power and infrastructure facilities such as power grids and high-speed rails, private enterprises were caught in the throat by iron clamps. The hidden social cost of private enterprises is high. Taking the social security proposed by the Federation of Industry and Commerce as an example, the National Federation of Industry and Commerce’s proposal on social security rates is based on the investigation of corporate contribution burden and the current social insurance premium rate in China. The relevant content such as the level and the proportion of the payment obligor are analyzed and compared with the corresponding matters of the social security system of 125 countries in the world. Among the 125 countries, 11 countries have social security rates of more than 40%, accounting for 8.8%. From the perspective of the country's economic development, most of the developed welfare countries such as Europe and some countries with economies in transition, China's social security rate is over 40. %, higher than Germany, the United States, and higher than Japan and South Korea in the same Asia. The social security burden of enterprises and employees is heavy. Zheng Bingwen, director of the Latin American Institute of the Chinese Academy of Social Sciences, said that the total amount of contributions from the basic social insurance (five insurance) of the Beijing service industry is equivalent to 43.2% of the salary. Basic pension insurance, the proportion of employers and employees combined is up to 28%, far higher than the US 12.4%. If you add the housing accumulation fund that employees and enterprises need to pay, some enterprises still have an annuity, and the expenses that enterprises and employees need to pay are as high as 72%. There were once small owners who used the newspapers and the Internet to print books, saying that they could not survive without tax evasion. This is consistent with what I have seen. The profits of private small and medium-sized manufacturing industries are mostly between 3% and 5%. If the cost continues to increase, SMEs will fall into a large-scale collapse. If the social security paid by enterprises and employees can establish a sound social security system and reduce the cost of social operations, it can reduce the burden of private enterprises as a whole and benefit private enterprises. However, the key issue is that social security paid by enterprises may not be able to establish a relatively fair and perfect social security system. Whether it is medical care or old-age care, the resources occupied by civil servants and public institutions are too large, so that the social security funds paid by private enterprises are likely to fill. The bottomless pit of civil servants and institutions. The social security contributions paid by migrant workers in Guangdong and other places have often entered the local government's pockets when they quit because they cannot achieve nationwide networking or even the city's networking. Factories and employees bear the cost but can't harvest it, apparently plundering the welfare of the lowest workers. What private SMEs need is not the tax incentives and credit concessions for rent-seeking space, but the fair tax system and industry entry standards.
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