Abstract
Purpose: The objective of this research is to reform the current real estate tax system and establish the real estate tax system suitable for China’s national conditions. Design/methodology: Based on the necessity of the real estate tax reform, the paper studies the system optimization and its effects analysis of the real estate tax. At last, the paper uses the system dynamics to demonstrate the feasibility of the real estate tax from an empirical point. Findings: With the system dynamics, we can establish the causal relationship of the influence factors and forecast the impact on the future real estate prices. It can also provide some suggestions for China’s real estate tax reform. Research limitations/implications: The establishment of the model might not be very mature, so we need the further study and improvement. Originality/value: This study was the first to use system dynamics to analyze the impact of real estate taxes on real estate prices, and we hope to provide some suggestions for China’s real estate tax reform.
Highlights
In recent years, with the rapid development of the real estate industry in China, there are still many problems and shortages in the real estate tax system
We propose the optimization of China’s real estate tax system and analysis its effect on China’s real estate market
In order to solve the problems proposed above, the real estate tax system optimization should focus on the holding phase, it means to levy the real estate tax in the holding phase—to merge the property tax, urban land use tax of the holding phase and the land leasing into the real estate tax, and cancel the land value increment tax (Qiu, 2009; Wang, 2008; Xu, 2007)
Summary
With the rapid development of the real estate industry in China, there are still many problems and shortages in the real estate tax system. To Regulate the real estate market and control the effect of widening income gap through the real estate tax is difficult to reflect, so it is very important for the healthy development of China’s real estate market and our tax system to reform the current real estate tax system and establish a complete set of the real estate tax system. Based on the necessity of the reform of the real estate tax, we learn from the successful experience in the real estate tax of foreign country in order to establish a feasible and effective real estate tax system in the light of the actual situation of China. We analyze the economic effects brought by the real estate tax optimization from both theoretical and empirical aspects
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