Research On Actual Tax Burden Of Real Estate Industry In China

The real estate industry brought forth the Reform of Housing System in1998.Since1999, the real estate industry develops very fast. The development and investment rate of real estate continued to grow faster than GDP’s.Investment of410.3billion yuan from1999to2013of8.6013trillion yuan. It directly contributed about ten percents to the growth of the national economy annually. Also the real estate industry has a long chain, wide range of radiation, through the related industries, stimulating consumption, so that the sum of two contributions to GDP could reach14.5%.Such a powerful driving ability, real estate has become the pillar industry which can promotes the consumption, enlarges the domestic demand, pulls the growth of investment, and ensure the fast and healthy development of national economy that keeping the sustainable and healthy development of the real estate industry.However, in recent years, the real estate industry develops disorderly and brings high price. In case of the real estate bubble, the government has repeatedly implemented macroeconomic policy regulation, including monetary policy and fiscal policy. As an important means of fiscal policy-the real estate tax policy in the government’s macro-control has an irreplaceable role. The real estate tax is an important economic lever to intervene the real estate price and promote the real estate market to balance. It plays an important role to guide the efficient allocation of real estate resources. Because of the exuberance of the real estate market the Government has repeatedly used the real estate tax policy to regulate.the real estate market, but had little effect. So some researchers explains that the existing property tax system has a lots of shortcomings which brings the overweigh tax burden to real estate industry.How high tax burden in the real estate industry? Whether the existed tax burden caused the negative impact of the real estate development? This paper will research in-depth.These questions require that must be found the best tax rate, it is the best combination point among tax burden、tax income and growth of economy that had been proved indeed existence by Laffer Curve theory.Investment is the main power to the growth of economy of the real estate industry. Thus in this paper, it is found the reasonable level of tax burden suitable for the health development of domestic economy, through establishing the mathematical model. Finally, combined with current economy reality in our country, the paper propose that reform the tax burden policy of the real estate industry, for realizing the optimal configuration of resources and the benign cycle between the tax income and the tax burden, reaching the aim that promote the development of this pillar industry healthily.