The Analyisis Of The Property Tax Reform Effects In Shanghai And Chongqing

Since 2011, Shanghai and Chongqing government have published the pilot program of personal housing property tax, it marked the beginning of Chinese housing property tax reform, and caused a community discussion. whether the reform can play a role in adjustment of social-economic issues is the main problem to our study.Through the theory and the actual social-economic status analysis, we found that the reform is generally mild and have some certain effect on three aspects, respectively is the local financial revenue effect, the income redistribution effect and influence on the real estate market, but the impacts are limited. In order to strengthen the conclusions, we selected lots of Economic data of 20 high price cities from 2009 to 2012, established the fixed effect econometric model by using difference-in-differences, so that we can estimate the effect of Property tax reform on housing price. The result shows that imposed the Property tax caused the housing price of pilot cities to fall by 6.48 percent. And we found that except the reform scheme constraints property tax play effect, the economic structure, development level, social expectation and national regulation also affect the reform.According to the analysis and results above, we gives out some suggestions for advancing reform of real-estate taxation. Firstly, we should positioning the property tax that promoting social justice must be the primary purpose and the second is to improve the housing resources use efficiency, at the same time to focus on property tax must be suitable for tax reform. Then on the basis of Shanghai and Chongqing pilot experience put forward some measures to promoting the future reform.