Study On Mechanism Of Real Estate Tax Regulation In China

Currently,there is a continuous rise in housing prices across major cities and regions in China due to rapid development in the real estate market.These prices have become unbearable to the ordinary citizen."Houses are for living,not for speculation" has become a social consensus.Therefore,there is a need for the government to adopt a macro-policy to regulate the real estate market.This study will develop a theoretical system of a real estate tax regulation,providing a reference for the related behavior of decision-making of all participants in the real estate market,and countermeasures and suggestions for promoting a healthy and stable development of China's real estate industry.In this study,the AD-AS model and four-quadrant model were used to explore in theory the action mechanism of real estate tax regulation in different links,different subjects,and policy choices.The panel data of all relevant factors between the period of 2006 to 2016 were collected.The eviews8.0 econometric analysis and statistics software was used to conduct an empirical analysis of the regulation effect of the real estate tax.The relationship between real estate tax and real estate price in the holding link and transaction link was estimated and tested.On this basis,the study puts forward the countermeasures and suggestions for perfecting the tax regulation of China's real estate market.The main content and innovative results are as follows:1 ? Revealing the deficiencies of the real estate tax regulation in China.Administrative tools are most frequently applied compared to economic tools.Generally,the strength of the coordinated use of regulatory means is not sufficient.2?Putting forward the types,objectives,and tools of real estate tax regulation.Obtained the mechanism of real estate tax regulation on price,income,discretionary and automatic stabilization.Based on the western economic theory and AD-AS and the Four Quadrant model,this study establishes the process and function of a real estate tax regulation.Firstly,determine the relationship between the supply and demand of the real estate market and the housing prices.Secondly,analyzed the different links of real estate development,trading and holding for different market by government bodies,developers,and consumers.3?Empirically analyzes the real estate tax regulatory effect.The change of the real estate tax burden in the holding and trading links has a significant impact on;the GDP,the sales area and average price of commodity houses,the average residential consumption expenditure of urban residents,the rent and the return of real estate capital.The holding link has a more significant effect on fiscal revenue than the transaction link.The change of real estate tax in the transaction link had a more significant impact on consumers' residential consumption expenditure.Presently,the real estate tax burden in China is seriously low.4?Constructing the real estate tax regulation model.The regulation regression equation was developed for the quantitative prediction of tax regulation.In this study,holding and trading links of the real estate tax,and average sales prices of commodity house were selected as the research variables.Panel data were collected from 31 provinces in China between 2006 to 2016,autonomous regions and municipalities to perform this study.The real estate tax regression model was built using the eviews8.0 econometric analysis and statistics software.The model provided a theoretical basis and technical support of the control for the perfection of the real estate tax revenue regulation system.5?A comparison to real estate tax regulation and control practices in the United States,Japan,and the United Kingdom suggests the following: Mandating the local governments to formulate and collect policies,Implementing the basic principles of "wide tax base,few tax types and low tax rates",The real estate tax system of “encouraging holding rather than transaction" can accelerate the real estate transaction activities,thus,developing the overall resource allocation and achieving more ideal economic vitality.6?Implementation of the proposed real estate tax reform policy will achieve the following;increasing local fiscal revenue,promoting the rational return of real estate prices,guiding residents to make housing consumption more reasonable,and narrowing the gap in the distribution of residents' wealth.However,the setbacks that need to be solved in the implementation of policy are;the reasonable determination of the real estate tax burden in the holding link,the reasonable need for the real estate tax deduction and exemption,and the contradiction between the power of tax legislation and "one city,one policy".The outline conception of tax system design is put forward for real estate tax reform.