The Research Of China’s Residential Property Tax

During the 20^thNational Congress,Xi Jinping emphasised,China’s new principal contradiction has changed into new contradiction between peoples’s increasing life needs and development’s imbalance and inadequacy.It is the guiding direction of China’s institutional change.As an important part of national governance and institutional change,the personal residential real property tax system has a direct and extensive relationship with the interests of the people.Since the central government put forward the intention of tax collection in 2003,it has experienced the formulation change of real estate tax without land and property tax,and has experienced theoretical controversy and pilot failure.There are many obstacles in the way of institutional change.Therefore,the study on the necessity,feasibility and effectiveness of the change of the personal residential property tax system has important theoretical and practical value for resolving disputes and reforming the system.From 2017 to 2019,the government’s continuous tax and fee reduction policy,80%of which is to reduce local fiscal revenue,has a huge impact on local finance in the case of revenue reduction and expenditure increase,has changed the relative price and preference of institutional change.Whether and how the personal housing property tax system changes,and how to achieve the consistency between the people’s interests and the national interests,are the key points to solve the local financial difficulties,improve the local tax system,and meet the local public needs.They are the focus of the construction of the modernization of the local financial governance capacity,and are the concrete institutional embodiment of the national governance concept of co-construction,co-governance and sharing and the development idea of enhancing the people’s sense of gain.Based on the theoretical basis of new institutional economics,this paper first analyzes the necessity and feasibility of institutional change after the institutional environment changes,taking"institutional environment-institutional arrangement"as the theoretical framework.Taking the"purpose of institutional arrangement-content of institutional arrangement and implementation mechanism"as the internal relationship,this paper studies the cost-effectiveness of the purpose of institutional arrangement,and constructs the content of institutional arrangement and implementation mechanism under the guidance of the purpose of institutional arrangement.Secondly,it analyzes the history of the change of the personal residential property tax system,the scope and purpose of tax collection under different historical environments,and the current situation of the personal residential property tax system and the factors affecting the slow change of the system.Thirdly,it analyzes the necessity and feasibility of institutional change to eliminate some of the factors of delay,and puts forward institutional arrangements to effectively eliminate the remaining factors of delay.Fourth,it demonstrates the purpose of effective beneficial institutional arrangement,and discusses its effectiveness and cost-effectiveness from the theoretical and empirical perspectives.Fifth,it further analyzes the progressiveness of the institutional arrangement of benefit with S index,and verifies the income redistribution effect with sample data,and proposes a hierarchical distribution model that combines efficiency and fairness,and fully reflects the concept of sense of gain and sharing of the public.Sixth,it summarizes the conclusions of the study,and puts forward specific policy recommendations according to the effectiveness of institutional change,the purpose of institutional arrangement and the redistribution effect.The main research conclusions of this paper are as follows:First,the change of personal residential property tax system is necessary,feasible and effective.The difficulties of local finance,the lack of local tax system and the imbalance in the supply of basic public services put forward the necessity of institutional change.The development of tax-related information technology,the parallel institutional relationship between land transfer fee and personal residential property tax,and the experience accumulation at the pilot stage provide the feasibility of institutional change.The beneficial attribute and the co-construction and co-governance public participation implementation mechanism enhance the effectiveness of system supply.Second,the purpose of the arrangement of personal residential property tax system is determined as beneficial special purpose tax.The purpose of the institutional arrangement is determined to raise local fiscal revenue and specifically use it to improve local public services.It has effective characteristics in four aspects:efficiency,freedom and competition,democracy and transaction cost minimization.It also weakens the"free ride"effect and enhances the willingness and enthusiasm of taxpayers.The empirical analysis shows that the short-term and long-term benefits of individual residents have positive effects,and the net benefits of the government are greater than zero,so as to maximize the consistency between private benefits and government benefits.Third,the hierarchical distribution model of the personal residential property tax system reflects efficiency and fairness.This paper selects the Suits index to calculate that the two models of average distribution and grade distribution have obvious progressive nature,and regression analysis verifies the income redistribution effect of the two models.The average distribution is more progressive than grade distribution.According to the national concept of shared development,to realize the relative fairness of public interests,and the hierarchical distribution scheme is both fair and efficient,which is the preferred distribution mode under the concept of modern governance.Fourth,build the institutional arrangement content and implementation mechanism under the concept of co-construction,co-governance and sharing.Add the tax burden rate variable to determine the tax rate on the basis of the existing fixed income method,expand the scope of tax collection,adopt the universal tax model,collect ad valorem based on the combined assessment value of property,and apply the per capita value reduction scheme.As the main body of tax collection and management,the local government adopts the tax collection and management mode of prepayment and refund.Based on the governance concept of co-construction,co-governance and sharing,a transparent,democratic and fair implementation mechanism is established by means of information technology,public participation,improvement of public service level and reward and punishment mechanism.Fifth,revise the information transmission mode and construct the informal system of personal ideas.According to the theory of behavioral economics and psychology,the information output of the personal residential property tax system is mainly income-based information,and transmits the international high tax rate to raise the reference price;The mode of information output can be gradually released in stages and involved fields;With the help of the concept of co-construction and sharing social public service,the psychological account is established,and the subjective loss is reduced in combination with the tax refund model of prepayment;Pay attention to the insufficient supply level of existing public services and reduce the value of anchor reference points;The starting point of the levy is the period when people have a positive attitude towards economic development and national management.Finally,establish an informal system of personal ideas consistent with the formal system,and build a complete and efficient matrix of personal residential property tax system.There are three possible innovations in this study:first,research perspective innovation.This paper innovatively takes the new institutional economics framework as the theoretical support,constructs an effective institutional arrangement embedded in the institutional environment,sets up the content and implementation mechanism of institutional arrangement guided by the purpose of institutional arrangement,and establishes a complete and systematic research framework of personal residential property tax system.Second,the innovation of hierarchical distribution model.The research idea of this paper is to empirically study the progressivity and income redistribution effect of the hierarchical distribution model under the guidance of the theory of co-construction,co-governance and sharing of the modernization of national governance,and consider that the hierarchical distribution model is a sharing distribution system with both efficiency and fairness.Third,the informal institutional model innovation of public sense of gain.In this paper,behavioral economics and psychology are applied to the study of the informal system of personal residential property tax.The framework effect,loss aversion,psychological account and anchoring effect theories are embedded in the prospect theory to build an informal system model that enhances the public’s sense of gain.