Why can't the public grain paid by farmers in the past be converted into pension

Nowadays, many farmers or those who used to farm are envious of workers receiving pensions of three to four thousand yuan. Some argue that they too have contributed to the state by paying public grain taxes in the past, so why can't these be converted into pensions? The reason lies in the fact that public grain is essentially unrelated to pensions.

The essence of public grain.

In fact, public grain is a tax levied on units and individuals engaged in agricultural production, with the legal basis being the "Agricultural Tax Regulations." The agricultural tax has a history of several thousand years, known as "chu shui mu" in the state of Lu during the Spring and Autumn period. It has been referred to by various names over time, such as land tax, ground rent, agricultural tax, etc., but its essence is a tax collected by the state to ensure its operation.

Advertisement

Before the founding of the People's Republic of China, farmers had suffered from the hardships of paying agricultural taxes in the form of money, which were often exploited multiple times by merchants and landlords. After the founding of the People's Republic of China, the agricultural tax shifted to being mainly in kind, but with strict standards. Taxing farmers is indeed a historical tradition spanning thousands of years and a necessity for the country's production, living, and construction needs.

However, starting from January 2006, China completely abolished the agricultural tax and, to ensure the enthusiasm of farmers in growing grain, implemented three subsidies for grain production.

Therefore, public grain is essentially a form of taxation, and the basic principles of taxation are its compulsory and non-remunerative nature, which means it cannot and will not be exchanged for pensions.

Regarding workers' taxation.

In fact, the state also taxes workers and businesses. The taxation of wages was clearly proposed in the "National Tax Policy Implementation Guidelines" as early as 1950 with the introduction of personal income tax. However, due to the low wage system at the time, it was not implemented. Personal income tax actually began to be levied in 1980 and has continued to the present day. The current tax threshold is 5,000 yuan, and individuals can also enjoy special deductions and additional deductions based on their personal circumstances.The origin of China's retirement and pension system.

China's retirement system originated from the "Labor Insurance Regulations" in 1951 and the "Interim Measures for the Retirement of Workers and Staff" in 1957, but it was primarily based on employers providing for the elderly.

For the elderly in rural areas, according to the "Model Articles of Association for Advanced Agricultural Production Cooperatives" and the operational regulations of rural communes, it was necessary to retain basic food rations and even firewood expenses for elderly farmers, which can also be considered a pension model in line with the level of rural production and living standards.

With the reform and opening up of China, the rural implementation of the household responsibility system for contracted production led to the distribution of land to individuals. As a result, the pension system for farmers was changed to one based on the right to contract land.

However, for enterprise employees, they no longer have means of production after retirement. Originally, they were supported by their employers, but enterprises also face issues of good or bad management. In order to promote the reform of state-owned enterprises and address the problem that state-owned enterprise pensions could not go bankrupt, the state established a pension insurance system.

In October 1986, the state implemented the comprehensive payment of pension insurance for new employees entering state-owned enterprises under the labor contract system. Starting in 1992, all enterprise employees were required to pay into the pension insurance system. Moreover, groups such as flexible employment personnel can also participate in pension insurance by paying their own contributions. The Social Insurance Law clearly stipulates that the social insurance premiums for the period of deemed contribution years for employees of state-owned enterprises and institutions are borne by the government.

The deemed contribution years actually refer to the necessary conditions for the original retirement system - continuous years of service.

To address the pension issues of farmers, considering their low income and inability to afford high social insurance premiums, the state established the New Rural Pension Insurance, which was later transformed into the Urban and Rural Resident Pension Insurance.

The current Urban and Rural Resident Pension Insurance is not only participated in and enjoyed by farmers, but also by unemployed or unemployed urban residents who participate in this pension insurance and enjoy the same standard of benefits.In order to include as many elderly people as possible in the pension insurance system, the payment levels for urban and rural residents' pension insurance are very flexible, with the lowest level being as low as 100 yuan per year. For special groups such as low-income families, severely disabled individuals, and households registered in poverty alleviation files, the government pays the personal burden on their behalf. Elderly people who have reached the age of 60 before the establishment of the new rural pension insurance system in their local area can receive the basic pension benefits without making payments.

Additionally, the restrictions on the insurance system have been lifted, and farmers can now participate in the flexible employment pension insurance by bearing the full social insurance costs themselves, and they will also be able to retire and receive pension benefits.

Overall, the country has also established a pension insurance system suitable for the actual situation of farmers. However, paying public grain is similar to paying personal income tax now and is not related to the pension. #Top Headline Challenge# #Farmers' Pension#

Keep In Touch