Economic Analysis Of Real Property Possession Tax

Real property tax is a tax on the fact of the possession of real property,which contains both the possession of land and the possession of those locatedon the land (mainly houses). In China, people are paying more and moreattention to real property tax, for the present real property tax system is provedto be much defective, and the status of real property possession tax is improving.In October 2003, our government announced that a new system of property taxwhich is tax as real property possession tax will be established when conditionsall mature. However, our research (especially theoretically research) on it is solimited that it will seriously blocks our pace of establishing the new system ofproperty tax. Thus, it is much necessary to do deep research on the theory ofreal property possession tax.This paper tries to do an economic analysis of real property possession tax.It generally contains two parts: theoretical research and application research. Inthe part of theoretical research, the incidence and economical efficiency effectsare analyzed. Based on its conclusions, suggestions about the new system ofproperty tax are given in the application research part. The details are as follows:As a lead-in, Chapter 1 introduces the background and significance of thetopic, the status quo of the research on it in domestic and overseas, and also theaim and means of research in this paper. Besides, the conceptions related to thepaper are defined rigorously.Chapter 2 studies the incidence of real property possession tax, whichshows the effects real estate possession tax will bring on the equity ofrevenue-redistribution. After the introduction of three representative points ofview in western word, the feasible point of view that can be used in our country issuggested.Chapter 3 studies the efficiency effects of real property possession tax.There are generally three sections: the fist is about the efficiency effects of landpossession tax, then houses possession tax follows, and last comes the analysisof several discriminating real property possession tax policies.Chapter 4 is the transitional part from theoretical research to applicationresearch. In this chapter, four controversial issues about the new system of realproperty tax are discussed.Chapter 5 summarized all the conclusions above, based on whichsuggestions on the design of our new system of real property tax are given,including how to confirm the taxpayers, the objects levied, the tax rate and howto make the preferential policies.