A Study On The Effect Of Real Estate Tax System On The Real Estate Market In Shanxi Province

Housing is the fundamental of living, which concerns theeconomic stability and harmonious development. In recent years, Shanxi realestate market has been much flourished. At the same time, it not onlypromotes economic growth, but also causes some social problems. Manyfamilies can only dream of buying house due to the ceaselessly rising realestate price. Furthermore, the housing problem has become the current hottopic of people’s livelihood, and the housing problems of low-incomefamilies have also become the spotlight of discussion. As the most importantmacroeconomic control mean of real estate industry, real estate tax hasplayed a leveraged role in healthy real estate industry development. So theShanxi government should be committed to solving the housing problem ofmiddle-low income family through real estate tax regulation, and it also hasrealized the important guarantee of home ownership scheme.With the further development of Shanxi province market economy,current real estate system can not be able to meet the demand of real estateindustry development. What’s more, as well as the short comings drawbacksof the major taxation estate industry of our country. Imperfect real estate taxsystem and drawbacks have emerged along with the development in recentyears, which has hindered the further real estate development in a greatdegree. Therefore, it is of great urgency to reform and improve real estate taxsystem of our province. This paper summarizes and analyzes potentialproblems of the current system through expounding the theory of real estatetax system and posing specific suggestions and measures in light of experiences from other countries with comparatively more mature real estateeight tax systems.