Analysis On China’s Real Estate Tax Optimization And Tax Effect

The real estate industry is one of the important pillars of China’s national economy, it plays an important role in the development of economic. But the soaring housing prices have also become the topic on focus of the public. In recent years, central and local government implement a maximum intensity of macroeconomic regulation, but it is still difficult to control the rising prices. Among the many control means, the real estate tax is the most effective means. China’s current real estate tax has lagged behind the development, and it has exposed more and more drawbacks. So it is difficult to regulate the real estate market and narrow the gap in income distribution with the real estate tax, and real estate tax optimization will have a positive effect which can not be ignored. Therefore, to reform the current real estate tax system and establish the real estate tax system in line with China’s national conditions will become an important measure to curb speculative investment and stabilize prices.This thesis analyzes the status quo of China’s real estate tax system and finds that there are many unfavorable factors, which are contrary to the principle of taxation and not conducive to achieving revenue goals, in our current tax system. So China’s real estate tax optimization is necessary for us. Currently some foreign countries and regions have formed mature real estate tax system, and has been confirmed in many years of practice tests, we can learn the successful experience and learning from them. So it increases a certain degree of feasibility of China’s real estate tax system optimization. Research on both at home and abroad, this thesis presents the initial program of the real estate tax optimization, and demonstrate its legitimacy and effectiveness from both the theory and models aspects. It analyzes the real estate tax effects to the key stakeholders (local government, real estate development companies and consumers) with the tax effect theory. It qualitatively reasons the effects to the real estate prices of the tax optimization with the Equilibrium Principl and Tax Shifting principle. At the same time, the thesis creates a system dynamics model and tries to quantify the effects to the real estate prices of the tax optimization more intuitive and clearly. Final conclusion tells us that, to optimize our real estate tax and levy the real estate taxes in the maintain phase, can increase local government revenue, balance the the tax burden on all parties, achieve the optimal allocation of resources and control the high prices as well.