Legislative Purposes Of Property Tax Under Background Of Structural Tax Cuts

Property tax is levied on the housing, it is taxed in the housing matain links, is a direct tax and belongs to local taxes. With the development of society, our "property tax regulations" is no longer applicable to the current situation, there are many problems about pilot reforms in Shanghai and Chongqing, so we must establish the legal systems of property tax. The first thing to do about legislative activity is to locate the legislative purpose. Only the purpose of the legislation is accurately determined, the legislative activity will have the guidance and direction and design of property tax systems will make sense. Theoretically, there are three main views on the purpose of proerty tax legislation. The first view of the legislative purpose is to locate property tax as income--adjusted tax. This kind of view is to reduce the total income of the taxpayers by property tax, the more real estate and the higher value, the more taxes, the less real estate and the lower value,the less taxes. Property tax regulate the distribution of income in this way. Those who oppose this view hold the idea that the rich have diverse forms of properties, property tax can not adjust all of the income distribution. The second point is that the purpose of the property tax legislation is positioned as market regulation tax. It is through increasing the costs of housing matain links to regulate the real estate market. The opposite view is that high prices are the result of many factors working together, only by property tax can not effectively control the prices. The third point is that we should design property tax as the main local tax. Compared to other types of taxes, property tax revenues are stable because it is levied on real estate,which can not be moved and hided. The objection is that the current land finance and the resistance to property tax make the design unrealistic. In practice, pilot reformes in Shanghai and Chongqing designed and practiced a series of related property tax systems to suppress the high prices, adjust income and promote housing distribution. Both are lacked of property tax attributes, but stronger about commodity tax attributes.So the reformes did not cause significant suppression to high prices; the riches’many high-end real estate were also excluded in the regulation of the adjustment, which caused the effect of adjusting income distribution was not obvious; another point, pilot reformes supplied limited tax revenues to local financial revenue. Overall, the results in the two cities are unsatisfactory.By studying about property tax law systems in advanced countries and regions, the paper believes that establishing the legislative purpose of property tax requires a combination of basic national conditions, and explore the purpose at several levels in the background of the structural tax cuts. Structural tax cuts are to reduce the overall tax burden,at the same time, some kind of specific taxes increase or decrease, it is a structural adjustment. Firstly, the policy of structural tax cuts itself is in order to make the macro-control, but in the long run in order to optimize the tax structure, therefore, the legislative purpose of property tax should also be studyed from the two angles, short-term and long-term. Secondly, the high prices and the real estate bubble is mainly because of the low cost of housing ownership, investment speculation pushed up prices, property tax can increase the cost of housing-hold against investment speculation Further analysis, property tax has extensive and stable tax base, if we practice the tax in a long time, it will become a local body tax, which can achieve the result of optimizing the tax structure. Therefore, under the background of structural tax cuts, the direct legislative purpose of property tax should be regulated tax to regulate the real estate market; in the long run, the legislative purpose of property tax should be the local government main tax to supply a stable tax revenue to the local government and help the government get rid of the land finance. Furthermore, as a kind of taxes, the implementation process of property tax will inevitably bring out the effect of adjusting the income gap.Therefore, in the context of structural tax cuts, the direct legislative purpose of property tax should be used to regulate the real estate market recently, it should be designed as a local body tax in a long term; it will derived produce the function of adjusting income, narrowing the gap between rich and poor, and achieving a fair society through property tax.