Research On The Impact Of Shanghai And Chongqing Real Estate Tax Pilot On Local Finance

In recent years,with "camp to increase gradually in our country,local governments gradually lost its original as main fiscal revenue of local tax,business tax,powers and responsibilities and then down to the place,cause local fiscal deficit is more and more serious,and the practice of the original land finance of local government is not a long-term solution,coupled with the unhealthy development of real estate industry in our country,there are many bubbles such as the status quo,the property tax reform is imminent.Some countries in the world regard real estate tax as the main source of local financial revenue,adjust income distribution and regulate the development of the real estate industry,which provides experience for the reform of China's real estate tax.Based on the research results of some scholars,this paper holds that China's real estate tax should take raising local financial revenue as its main function,and sorts out the reform process of China's real estate tax as well as the existing problems of relevant systems:vague function positioning,small income range,and large implementation resistance.In 2011,real estate tax was piloted in Chongqing and Shanghai.This paper studies the effect of real estate tax reform on local finance.First of all,to Chongqing,Shanghai local finance,tax revenue structure and the property tax,property tax revenues of the local fiscal boost degree and contribution are analyzed,and the analysis results show that Chongqing,Shanghai local fiscal revenue,fiscal expenditure for years rapid growth,and there have been financial gap,camp to increase fiscal revenue after the lack of stability,is suitable for the main source of income,in the two cities real estate tax reform is not big,not good pull effect to fiscal revenue,contribution is not high also,but less affected by economic fluctuations,the stronger income stability.Then,this paper established a double-difference model,took Chongqing and Shanghai as the experimental group and 32 other Chinese cities as the control group,and collected relevant data from 2007 to 2017 for empirical analysis.Before empirical analysis,correlation analysis was conducted on relevant variables and parallel trend test was conducted on relevant data.The results showed that the collected data could be estimated by the DID model.The relevant policies of the real estate tax pilot were promulgated in 2010,so the expected effect test was conducted with the year 2010 as the limit.The test results showed that taxpayers and the government had not formed significant expectations for the real estate tax pilot,so the DID estimation of the real estate tax pilot policy was effective.After the test,the model was regressed,and the difference GMM estimation method was used to eliminate the endogeneity to obtain the estimation results.The impact of real estate tax on local finance was analyzed in three aspects:general financial budget revenue,general financial budget expenditure and financial gap.The empirical results show that the increase of property tax will cause the increase of fiscal revenue,fiscal expenditure and the reduction of fiscal gap,and the positive impact on fiscal revenue is greater than fiscal expenditure.Based on the results of the full text of the study,the following five Suggestions are proposed.Increase the intensity and scope of property tax collection;Based on the benefit,regulate the use of property tax revenue;Assist taxpayers to form good expectations and improve tax compliance;To the real estate tax levy to form expectations,appropriate adjustment of government behavior.