The Construction Of The Property Tax Exemption System Under The Principle Of The Ability-to-pay Taxation

After 30 years of reform and opening up,China became the second largest economy in the world.While creating the remarkable "Chinese miracle",all the maladies centering on economic construction are gradually highlighted.China’s estate industry has been developing rapidly since the 21 st century,and the enthusiasm of all sectors of society for investment in the estate sector has never been higher than before,making the estate industry gradually become the pillar industry of the national economy.With the GDP growth rate declining due to the weakness of the real economy in recent years,more and more hot money has poured into the virtual economy represented by the estate market,which further aggravates the bubble of the estate market while withdrawing money from the real economy,and the excessive housing price has become the consensus of the whole society.The "subprime mortgage crisis" that swept the world in 2008 has fully proved the devastating impact of the estate bubble on the economy.The estate industry "had an unique development" in the context of the overall decline of the real economy,which cannot cover up the high local debt and the deep accumulation of systemic financial risks.In 2015,general secretary Xi Jinping pointed out at the central economic work conference that the estate issue has become an important factor affecting the sound economic development and the harmony and stability of people’s livelihood.As a result of the exemption of individual non-commercial housing in the applicable "provisional regulations on property tax of the People’s Republic of China",as well as the unreasonable tax system in the relevant fields of estate,in recent years,the housing price has soared the gap between the rich and the poor.In addition,since the implementation of the policy of replacing the business tax with a value-added tax,the absence of main taxes from local governments has increased the reliance on land transfer fees and further pushed up housing prices,creating a vicious circle.Property tax reform is urgent.As the core issue of property tax reform,the property tax relief system is not only related to the guarantee of the basic residence right of citizens,but also affects the fairness and efficiency of taxation.Good system design reform cannot leave reasonable guiding principle.The principle of the ability-to-pay taxation has important value in the theory of tax law,and it also meets the realistic demand of China’s tax reform,especially in the field of estate tax and exemption system,which has irreplaceable positive significance.In this paper,under the background of estate tax reform,from the principle of ability-to-pay taxation can test the reform of current estate tax system in our country and the reform pilot in Shang Hai and Chong Qing,through the study of American estate tax system,especially on the analysis on "circuit breaker" design,put forward the property tax relief system design in our country.This paper is mainly divided into the following seven parts:In this paper,under the background of estate tax reform,from the principle of ability-to-pay taxation can test the reform of current estate tax system in our country and the reform pilot in Shang Hai and Chong Qing,through the study of American estate tax system,especially on the analysis on "circuit breaker" design,put forward the property tax relief system design in our country.This paper is mainly divided into the following seven parts:The introduction part mainly introduces the background,significance,research summary,research idea,innovation and deficiency.Chapter one introduces the concept of property tax and tax exemption and analyzes the nature and function of property tax exemption.The second chapter introduces the definition and connotation of the principle of ability-to-pay taxation and studies its guiding significance to the construction of property tax exemption system.The third chapter discusses the basis of the property tax exemption system and divides it into five categories: nature of property,taxpayers’ characteristics,property value,taxpayers’ income and property ownership change properties.Chapter four expounds the ways of property tax exemption into two parts,direct and indirect,and puts forward some suggestions on the reform of the way of property tax exemption in China.Chapter five is a systematic interpretation of the "circuit breaker" system of the property tax in the United States,which is widely recognized,and the basis and mode of property tax exemption are well combined in practice and application under the principle of ability-to-pay taxation.Based on China’s national conditions,this paper puts forward suggestions on the establishment of a phased and regional exemption system under the principle of ability-to-pay taxation.The conclusion part summarizes the whole article.