The Impact On Domestic Market By Progressive Taxation Of Real Estate: Theory And Empirical Research

As the high level of economic development and urbanization, the development of real estate market is rapid, which take a supporting role in economic development. But at the same time, the high prices in housing market have plagued the residents and government. Especially for those low-income residents, house prices rose faster than revenue increased,from the angles of speed and range. However, housing is a basic condition of human existence, the basic role in residential life cause the inevitability of price regulation. From the economic point of view, with a theoretical analysis of supply and demand, investment demand in strong housing demand do great harm, so it should be suppressed promptly. This kind of demand, on the one hand,cause a false market demand, then a unrealistically high price, which is prone to lead the market bubble.On the other hand, it may disturb the normal operation of market supply and demand, deliver the wrong signal to developers, resulting in unreasonable supply and a waste of resources. From the sociological point of view, the fact that housing investment need large capital and house price is expected to be appreciated makes high incomers rushed out to invest in real estate,leeding to the further widening income gap. Therefore, from this perspective, maintaining a reasonable residential market demand is important.On the basis of residential market and tax status, learning from international experience, this paper proposes the necessity of levying property tax,trys to design a progressive program and demonstrate the effect of progressive tax on residential markets from the demand point,showing that the progressive tax is a effective way to adjust residential demand structure.Using survey forms in Guangzhou City, the paper compares and analyzes the results of the designed three progressive tax program, tries to demonstrate the validity of progressive taxation from the point of demand and make some meaningful suggestions for imposing progressive tax of property.