Improve The Local Tax System Based On Property Tax Study

With the development and change of economic environment in China, although a new round of tax reform has begun, the problems existing in real estate tax system cannot be ignored. In the Decision about perfecting socialism market economic system made by the 16th National Congress of the Communist Party of China, such issues have been put forward as implementing reform concerning construction tax fees in urban areas and laying unified and standard property tax on real estate and abolishing some relevant fees when conditions are mature. Therefore, since then property tax has aroused great concerns in all walks of life. However, the idea of levying property tax hasn't been carried out although it was put forward for a long time because property tax, as a new tax type, involves the fundamental interests of the majority. For example, will levying property tax aggravate the burden of common people? Or what are the effects of implementation of property tax? Or how will the tax system concerning property tax be designed? All these issues above will be covered in the thesis.The thesis is composed of four parts. Part one introduces the development course of real estate tax system of China since the founding of new China. Besides, in this part a number of problems concerning the present real estate tax system are pointed out by citing much data and specific case studies. In part two, by introducing the real estate tax system of the United States, France and Japan, the characteristics of property tax of foreign countries with regard to tax system design are analyzed, from which lots of lessons may be learnt. Part three elaborates on the significance of laying property tax in current situation by providing statistical data and graph analysis. Laying property tax has following benefits. First, laying property tax helps to improve the local tax system and promote tax system reform. Second, it helps to inhibit speculations in the real estate industry and then guide the real estate market to develop healthily. Third, it helps to balance the gap between rich and poor. Fourth, it helps to improve the level of the taxpayer's tax–related compliance. As the focus of this thesis, the fourth part deals with the system design concerning property tax. In this part, the author, by proposing the guiding ideology of levying property tax and making a comparative analysis of two reform models concerning property tax commonly recognized by the present academic circles concludes the fee for land transfer can not be merged into property tax to be levied. And under the condition of determining the reform model, the tax system may be designed in terms of tax payers, tax object, the scope of taxation, the tax basis, the tax rates and the tax collection. Based on what are mentioned above, the author puts forward corresponding matched measures: first, property tax rates should be designed from the macro point of view, that is, without reducing the current tax revenue which has been incorporated into the property tax,, the taxpayers'revenue affordability should be considered. And by conducting an empirical analysis of property tax situation in Beijing in this thesis the feasibility of the scope of the tax rates is also demonstrated.