The Impact Of Property Tax On Household Consumption

Since the beginning of this century,the rapid development of real estate and large-scale economic stimulus has driven the rapid rise in housing prices.High housing prices have accumulated a large number of real estate bubbles,which have also affected the redistribution of wealth and exacerbated the gap between the rich and the poor.China has introduced various policies to restrict purchase and loan to regulate housing prices,but its effects can only be affected in the short term,so the property tax reform came into being.Shanghai and Chongqing,as representative cities of different development levels in China,became the first batch of real estate tax pilot cities in January 2011.It has been seven years since the real estate tax reform.Through the research on the impact of property tax on consumption and the structure of the housing market,it provides a theoretical basis for the development of a more complete property tax for the large-scale implementation of real estate tax.The purpose of real estate tax is to improve the income distribution mechanism,narrow the gap between the rich and the poor,study the effect of the implementation of the property tax in Chongqing from the perspective of household consumption,and analyze the impact of the property tax on the residents' consumption,thus changing the welfare level of the residents.This paper first describes the principle and mechanism of the impact of real estate tax on residents' consumption from direct impact and indirect impact,and analyzes the impact of real estate tax reform on household consumption according to Chongqing's actual situation,and then puts forward hypothesis on this basis.Secondly,it describes and compares the implementation rules of real estate tax in Shanghai and Chongqing.From the housing market structure and Chongqing consumption situation,it describes the impact of property tax on Chongqing.It finds that Chongqing house prices fluctuate greatly due to property tax reform.Compared with the national residents,different income groups in Chongqing have also experienced different trends in disposable income and consumption expenditure.The price changes of new residential buildings below 90 square meters in Chongqing and new residential buildings above 144 square meters have shown different trends after the issuance of property tax.Then,the DID model is used to estimate the impact of the property tax pilot on the consumption of residents of various income groups in Chongqing and the changes in the consumption tax of different consumption types after the classification of consumption types.Finally,the relevant conclusions are drawn,and relevant policy recommendations are proposed for the property tax reform.This property tax has caused structural changes in the housing market,as the tax transfer of high-end residential and large-area users has affected the consumption of low-and middle-income residents.Through the double difference method model,the implementation of property tax has a significant impact on the consumption of Chongqing residents.Among them,middle-income residents are the most affected,while low-income residents are second,and higher-income users are not affected.In the face of property tax,the most frequent reduction of middle-income residents is survivable consumption,while the lowest consumption of low-income residents is developmental consumption.