Tax-sharing Fiscal System And House Price Control Policy In China

The problem of high house prices has been a matter of general concern of thewhole society, high prices not only have many negative effects on society andeconomy, but also challenges the normal ethical order，and have brought a lot of harmto the public like values disorders，cognitive disorganization，crisis of faith and so on.In order to curb excessive rise of housing prices, the government began to perform aseries of price control policy. After more than two years of policy implementation,though the momentum of rising house prices has been curbed，there are still manyobstacles in the implementation of regulatory policies.There are many factors affect prices. One of the factors is the local governmentcloser to the source of information，it can make use of this advantage to compete withthe central government. Uncooperative behavior of local governments to the centralcontrol policies led directly to the unsatisfactory outcome of price regulation.This paper analyzes the relationship between the tax-sharing fiscal system andthe house prices from the aspects of intergovernmental fiscal relations. There are a lotof defects in our tax-sharing fiscal system like the unfair distribution of financial andadministrative power，the financial transfer payment system is imperfectem and etc.These lead to the poor financial situation of the local government. Local governments are forced to rely on selling land to obtain funds，and the land prices lead to the rise inhouse prices. Reference to international experience，this article want to find a way tosolve the house prices problem from the aspect of improving intergovernmental fiscalrelations.