Research On The Influence Of Property Tax Reform On Residents’ Consumption Upgrading In Chongqing

With the proposal to accelerate the formation of a new development pattern with domestic great circulation as the main body and domestic and international double circulation promoting each other,how to release domestic consumption potential,expand domestic demand and improve consumer consumption level has become an important issue at present.In recent years,although the real estate market has been under the intensive regulation and control of governments at all levels,the housing price is still in a rising trend,which also makes the proportion of housing consumption expenditure in the total consumption expenditure of Chinese residents increasing,and the adjustment of the real estate tax policy will have an increasingly far-reaching impact on residents’ living consumption.In October 2021,the Standing Committee of the 13 th National People’s Congress passed the Decision of the Standing Committee of the National People’s Congress on authorizing The State Council to carry out pilot real estate tax reform in some regions,and the pilot real estate tax reform has been put on the agenda again.Under such a policy background,the evaluation of the effect of the real estate tax pilot in the pilot cities and the exploration of the impact of the real estate tax pilot on residents’ consumption decision-making behavior can provide an important empirical reference for the implementation of the real estate tax reform pilot work in the future.Based on this,this paper takes the property tax reform in Chongqing in 2011 as the realistic background,and discusses the impact of the pilot property tax reform on the upgrading of residents’ consumption in Chongqing from the perspective of the improvement of consumption level and optimization of consumption structure.The main content of this paper is divided into four parts.The first part combs the relevant literature about the property tax at home and abroad,and constructs the impact mechanism of the property tax on residents’ consumption upgrading based on the existing theories.The second part compares the implementation rules of the pilot property tax in Shanghai and Chongqing,and analyzes the implementation status of the property tax reform in Chongqing according to the existing data,starting from the goal of levying property tax.The third part is an empirical study.39 large and medium-sized cities from2005 to 2020 are selected as data samples,and the influence of real estate tax on residents’ consumption upgrading is empirically observed from the perspective of consumption level and consumption structure by using synthetic control method.The robustness of the empirical results was tested by placebo test,counterfact test before intervention and difference-difference test.The results show that:(1)the pilot real estate tax has a certain degree of inhibition on the improvement of the consumption level of urban residents in Chongqing,which is manifested in that the real estate tax has a significant negative effect on the consumption expenditure of residents.Compared with the subsistence consumption expenditure,the pilot real estate tax has a more significant inhibition effect on the development and enjoyment consumption expenditure;(2)The pilot real estate tax has inhibited the optimization of the consumption structure of urban residents in Chongqing to some extent,which is reflected in the fact that the pilot real estate tax has reduced the proportion of development and enjoyment consumption of residents in the total expenditure,and the proportion of consumption for the improvement of cultural quality and quality of life in the total consumption expenditure.Therefore,on the whole,the property tax reform in Chongqing has a certain degree of inhibition on residents’ consumption upgrading.The fourth part,from the four perspectives of reasonable design of tax incentives and tax rates,reasonable determination of tax targets and tax scope,coordination of the relationship between property tax and commodity tax,and implementation of property tax reform according to local policies,puts forward suggestions to improve the real estate tax policy in Chongqing,and provides policy reference for the following real estate tax reform pilot work.