Optimization Research Of Chinese Real Property Tax System——Based On The Local Public Finance Perspective

From the perspective of New Institutional Economics and Mechanism Design Theory, this dissertation tries to optimize the design of China’s land system and property tax systems, through using for reference from international experience, analyzes the historical evolution of China’s land system and the real property tax system and the current situation, proposes the optimization system of land and real estate property tax system on the point of view of local public finance. To facilitate the smooth implementation of the real estate tax, also gives mechanisms that are incentive compatible to the real estate tax levy.Longitudinal analysis of history shows that China has a tradition of taxation on house property and land property respectively. Horizontal comparison of world countries shows that real estate taxe can be divided into individual property tax which taxing on house property and land property respectively or taxing on houses and land respectively, and general property tax which taxing houses and land as whole. Taking longitudinal historical analysis and horizontal comparison of countries into account, this dissertation proposes that our country’s real estate tax should adopt individual property tax mode which taxing on house property and land property respectively, under such guidelines, this dissertation designs China’s real estate tax optimization scheme which including house property tax, land use tax, and idle land tax. As a supplement to the real estate tax, this dissertation also discussed the optimization of resource tax.Because real property tax is closely related to real property right, this dissertation explores not only real property tax, but also the historical evolution of China’s regime of real property right and international regime of real property right. In line with the the levying of real estate tax, based on emphyteusis during Ming-Qing dynasty and concession period, as well as the right to use of rural homestead after the country founding, drawing on the permanent land use rights in Poland and the former Soviet Union that had been implemented, this dissertation proposes that China should implement the long-term land use rights system embodied as "free renewal, regular registration", giving long-term and stable land use rights to land users.By ranking with population, territory, economic output this three indicators, this dissertation defines the United States, Russia, Japan, Brazil, Australia, Canada, India, Indonesia as "big country", to analyze the "big country’s " financial characteristics. The common characteristic of these "big countries" is the implementation of fiscal federalism, raising funds to provide public services through levying real estate tax for local governments. Tang once occured local financial phenomenon at it’s middle, but there was no formation of local public finance system, on the contrary, the feudal separatist rules lead to the destruction of the dynasty. Learning from international experience and historical lessons, this dissertation proposes to constraint local governments by public finances, introducing incentive compatible mechanism between local governments and local tax payers through real estate tax levying, so that local taxpayers can strengthen the supervision of the local governments via the local people’s Congress, let the masses to decompose the political pressure of the central government growing with each passing day.Using difference in difference method (DID), this dissertation analyzes the economic effects of Shanghai and Chongqing property tax pilot programme, finding that the impact of property tax levy on the prices of the two cities are in diametrically opposite direction. On the basis of existing research results, this dissertation distinguishes excise tax component and capital income tax component of real estate tax, discusses the relationship between real estate tax and real estate market, as well as the relationship between real estate tax and economic growth. Based on above-mentioned studies, this dissertation presents functional orientation of our real estate tax levy. Internationally the main function of immovable property tax is to provide revenue for local governments and to promote the rational use of land resources, the introduction of real estate tax in our country, in addition to these two basic functions, its actual functions lies in the regulation of local public finance system and the improvement of the governance mechanism, as well as the elimination of the real estate market failure and the promotion of the endogenous economic growth.On the path of realization, this dissertation designes guide mechanisms that are incentive compatibility to the real estate tax system, including decreasing tax structurally, opening census register to the real estate tax payers, legalizing houses with limited property rights conditionally, establishing a unified real property registration system and the social credit system, and implementing of budget democracy. Due to it’s early land leasing time, industrial upgrading effect, higher external population and the proportion of houses with limited property rights, Shenzhen is suitable for the pilot implementation of real estate tax as the first batch of city. From great strategy point of view, we should make experiments actively, to build a reasonable real property tax system which is of Chinese characteristic, suits historical rule, includes real estate tax and resource tax, meanwhile can help our country’s socialism modernization.