A Empirical Analysis Of Progressive Real Estate Tax And Housing Market Balance

The continuing rise of housing price in China not only sets barriers to meeting the demand of low-income urban population and young laborers, but also induces investment and speculative demand of high-income group which, in turn, pushes housing price even higher. In addition, the house is not only a kind of necessity of life, but also a commodity with high added value, so many people purchasing the big house or several housings for the sake of investment or speculation, which makes this contradict more worse. The government had already taken many measurements to adjust the housing market, such as limiting land supply strictly and controlling the housing area etc, but these measurements did not fully work, because the control of land can only make anticipant house reduce and the housing price rise. Therefore, in order to solve the demand and supply problem in real estate market, it is necessary to shrink parts of people demand of house. One of the way is to increase part of people's housing holding cost, which can repress the need of housing of big size, and attack their speculation need as well. Therefore, collecting Progressive real estate tax is a valid policy to control the residential housing market. In fact, other countries, like Korea and Singapore, appearing the not reasonable problem in construction of supply and demand, all adopted to collect the house property taxation to resolve this problem.The main purpose of this paper is to study that under the background that in the rigid land and people increasing fast, our county how to repress the need of the big area housing, urge to change the supply style, better satisfying the need of the low income, and lower the price of the housing in the background of rigid land and people's income increasing in China.. In the foundation that target, we put forward the textual hypothesis that the house progressive real estate tax can repress the need of the big area housing or several housings on the different degrees, and increase the common housing. Since collecting house progressive real estate tax has not been carried out in China, the paper prognosticates the consumer purchasing and making policy behavior using the emulation taxation.We draw some conclusions from our research. They are as followings: (1) progressive real estate tax can change consumer behavior decision;(2) progressive real estate tax can depress the investment and speculative demand of high-income;(3) progressive real estate tax can increase more common housing for the low-income urban population and young laborers; (4)housing price would be down.