China＇s Real Estate Tax Reform： Past, Present and Future

Since 1978, China＇s reform of real estate tax has made great strides with important milestones marked by the resumption of real estate tax collection on Chinese- funded enterprises and Chinese nationals. In the llth Five-Year Plan period （2006-2010）, the state administration completed the unification of tax rates for domestic and foreign- funded companies. However, the reform of real estate tax still requires many modifications during the 12th Five-Year Plan period （2011-2015）. The new plan should strive to streamline the tax system, adjust the tax base and tax rates, and delegate taxing authority.

Estate Tax Reforms in Taiwan： A Simulation Approach

This study uses the new classical Ramsey growth model to analyze the impacts of lowered estate tax rates in Taiwan. Simulation results indicate a decrease in capital stock and economic growth when post-adjusted estate tax rate falls below 28.22%, which resembles the optimal estate tax rate to keep capital stock unchanged. The results also show that estate tax rate cuts have caused changes in relative prices, resulting in excess burden （EB）. The implication of our simulation results is that Taiwan＇s current estate tax rate cut to 10% will not be able to increase capital stock and promote economic growth.

Real Estate Tax Reform,Economic Growth and Financial Stability

By constructing a multi-sector DSGE model embedded with tax wedge, housing mortgage fi nancing constraints and bank supervision constraints, this paper investigates the long-term impact of two types of real estate tax policies on economic growth and fi nancial stability, which are the unifi ed tax base assessment ratio and differential tax base assessment ratio for two major housing owners (household and enterprises). It also compares and analyzes the short-term impact of the above two types of real estate tax reform schemes on economic fl uctuations and fi nancial risks under the background of potential fi nancial risks facing China’s economy. The results show that: in the long run, the real estate tax will help economic growth, boost household consumption, and effectively suppress the excessive increase in household leverage and asset bubble risk through the “suppression effect” of housing prices and the “redistribution effect” on housing. In the short run, the real estate tax will not intensify the impact of systemic fi nancial risks, so it will not have an adverse impact on the maintenance of fi nancial stability. Different real estate tax policies have different impact on economic growth and fi nancial stability. Compared with the real estate tax with unifi ed tax base assessment ratio, the real estate tax with differential tax base assessment ratio is better for the coordinated development of financial activities and the real economy in the long term and play a stronger role in economic growth, which contributes to the unity of “stable growth”, “risk prevention” and “reform”.

Evaluation Research on Property Tax System in China

The reform of tax sharing system has made achievements from 1994 to now, but it also causes the lack of main tax category in local-tax system. Meanwhile, the disadvantage of property tax system in China exacerbates the dilemma of local finance, which can＇ t play the role of regulating real estate market. As the main content of real-estate tax reform, house property tax reform has been widely concerned and discussed since 2003. The paper analyzes the characteristics and disadvantages of the existing real-estate tax in China and the real-estate tax reform in Shanghai and Chongqing. The analysis indicates that the perfect real-estate tax has been established in China, but it is in the exploration stage.