Research On The Impacts Of Housing Prices In China's Real Estate Tax

With the rapid development of real estate industry,many problems have raised.The most pointed question is abnormally high urban housing price,widening the gap between rich and poor,which affects well-being.Tax.a control mean of fiscal policy,has positive regulating effects on many industries.Current property taxation mechanism has low regulating effect.It contains many problems such as complex tax system.various tax rates,double taxation and mainly taxing on dcevelopment and property sales rather than holding area.To regulate rising housing prices and accelerate the property tax legislation,China is exploring possible property tax reform to optimize the tax system.Property tax is an ad valorem tax on the value of a property,usually levied on real estate.It is a direct tax,as personal income tax,which concerns people's vital interests.A property tax plan has been mentioning in economic work conferences and government work reports for years since 2010.Property taxes in Shanghai and Chongqing began on a pilot basis in 2011 providing useful experience.As China focuses on implementing the policy of Cut Taxes and Administrative Fees,it has both theoretic significance and practical value that how to levy property tax to adjust the market and insure the sense of security-and well-being of people.This paper points out the feasibility of using property tax to regulate property market,reviewing the reform of property tax and studying the real estate tax of developed countries,according to comprehensive analysis of various factors of housing price.To analyze the short term and long term effect of property tax on housing prices,this paper takes Shanghai and Chongqing as examples.Improving suggestions of the property legislation are presented.Hopefully this paper can ease the passage of legislation on property tax.This paper focuses on what effects the property legislation has on property prices from the dual angles of view of tax official and homeowner.I conclude that property tax implementation at the national level is a necessity.Property tax can curb housing prices in the short run.In the long term,Distinguishing economies at different stages of development is necessary,cracking down on speculation will stabilize housing prices and step into the healthy development track.