Estate Tax Reform Research Articles

Ownership structure and carbon emissions reduction

This study investigates the relationship between ownership structure and reductions in carbon emissions. The Taiwan government passed the Greenhouse Gas Reduction and Management Act in July 2015, requiring carbon-intensive firms to disclose their annual direct and indirect carbon emissions. To mitigate endogeneity concerns, we use Taiwan's inheritance and estate tax reform in 2017 as an exogenous shock to a firm's ownership structure to conduct two-stage least squares analyses. We find that the higher the controlling shareholder's cash flow rights, the more a firm's direct carbon emissions will be reduced, consistent with the positive incentive effect, long-term decision-making, and socio-emotional wealth argument. Furthermore, we also find that when the controlling shareholder's board seat ratio highly deviates from their cash flow rights, the controlling shareholder is less concerned about carbon risk and even increases direct carbon emissions, consistent with the negative entrenchment effect.

The Necessity and Countermeasures of Property Tax Reform

In order to promote the development of the real estate industry, local dependence on the real estate industry presents an increasingly serious trend, which directly affects the healthy development of the real estate industry. In order to let the development of the real estate industry under the macro guidance and control to promote smoothly, the state needs to carry out the reform of the real estate tax, in order to promote the completion of the real estate tax, and let the national affordable housing construction to be comprehensively promoted. By analyzing the necessity of real estate tax reform and the existing problems in the current stage of real estate tax reform, we can work out a more feasible strategy for real estate tax reform.

Dilemma of Chinese Real Estate Tax Reform: Based on Evolutionary Game Method

High housing price is a great agitation for contemporary Chinese people, therefore, many Chinese, especially Chinese youths, would like to see a more stable real estate industry. As a device for government to guarantee the real estate industry progress healthily, real estate tax has been being unfortunately difficult to expand thoroughly in China due to local governments’ financial problems. The research target of this paper focuses on Chinese central and local governments and real estate company faced with real estate tax reform. With evolutionary game model, the authors conclude that the major obstacle of the reform in China is land-transferring fees. The breakthrough points in problem of spreading real estate tax could be increasing its comprehensive benefits. The reform could only be done effectively after that the vertical governments work with each other voluntarily, so this paper suggests that the central government should give full assistance to local governments in formulating property tax plans and should promote the position of property tax as the main local income tax to make up for the financial defects after substituting business tax with value-added tax.

The Impact of Property Tax on House Prices--Theoretical analysis based on the supply and demand model and the four-quadrant rule

This paper analyzes the impact of the real estate tax on house prices from theoretical models such as the long- and short-term supply and demand models and the four-quadrant analysis model, followed by a real estate tax country analysis. It is found that for most small and medium-sized cities, a real estate tax that imposes a tax on both the transfer and retention segments will lead to a significant decline in house prices in the medium to long term, but overall, house prices will still fluctuate up and down from the original trend. For cities with high house prices and large house price increases, a tax on only the transfer link will only drive The conclusion has some predictive value for the effect produced by the pilot real estate tax reform work, and at the same time, it has some guiding significance for the proposal of real estate tax reform in the paper.

A Study on the Promotion Process of Real Estate Tax Reform and the Difficulties and Obstacles of Reform in China

A Study on the Promotion Process of Real Estate Tax Reform and the Difficulties and Obstacles of Reform in China

International Reference and Mechanism Construction of Real estate taxation Assessment System Reform

The scientific real estate tax appraisal system is the basis for steadily advancing the real estate taxation reform. Based on WOS and CNKI, this paper uses CiteSpace software to analyze the number of papers, research focus, and countries with outgoing messages in real estate tax research. This study illustrates that: (1) In this field, developed countries have occupied strategic leadership. (2) The fiscal perspective of real estate tax reform is currently a hot issue in academic research, but the analysis of the real estate tax system based on the tax assessment is rarely discussed. Therefore, this paper refers to the construction of a RETAS that is relatively mature, analyzes and summarizes the selection of taxation basis, the setting of assessment agencies, the implementation of assessment procedures and the construction of dispute resolution mechanisms, improves the real estate tax assessment system with Chinese characteristics, and provides some experiences and references.

Research on the Policy Effect of Property Tax Reform: Take the Pilot Reforms in Chongqing and Shanghai as Examples

It has been ten years since the implementation of property tax reform in Shanghai and Chongqing. With the continuous promotion of tax reform, the central government clearly put forward the decision to accelerate the pilot real estate tax reform in 2021. Every piece of news about the pilot and promotion of property tax reform attracts close attention from people in related fields and becomes a hot topic on the Internet and media. Reform policies are carefully formulated and improved, and the relationship between reform policies, market demand, and people’s livelihood is properly handled so that the real estate market will develop in a healthy and stable manner and have a significant impact on the economy and society. This article mainly starts with the history of property tax development, reform priorities, and comparison with property tax policies of other countries. It takes Chongqing and Shanghai as the research objects, selects several typical factors, and uses multiple linear regression models for analysis. This article studies the impact of China’s property tax pilot on the real estate industry and its effects from both theoretical and empirical aspects and discusses the policy effects of the property tax policy pilot. The levy of real estate tax has a certain effect in a short period of time, but it is not ideal in the long run. Studying the economic effects of Shanghai‐Chongqing property tax is conducive to perfecting China’s property tax reform and promoting the healthy development of real estate market and economic and social development.

Research on the Reform of Real Estate Taxation in the Personal Housing Ownership Link

Housing is related to the well-being of people’s livelihood, but at present, the real estate market is overheated, and the price of commercial housing remains high. The implementation of the reform of real estate tax in Shanghai and Chongqing has aroused heated discussions in the society. A timely promotion of real estate tax reform and legislation can play a role in tax regulation. This study takes the reform of real estate tax in regard to personal housing ownership link as the research theme and discusses the setting of collection scheme, the application of tax evaluation technology, as well as tax collection and management.

Mark-to-Market (or Wealth) Taxation in the U.S.: Evidence from Options

Recent U.S. tax proposals under various names (e.g., wealth taxes, estate tax reform, etc.) center on mark-to-market (MTM) taxation, which eliminates investors’ ability to defer or avoid capital gains taxes. To provide insight on potential effects of these tax proposals, we exploit a unique U.S. setting where “index” options on the S&P 500 Index (SPX) face MTM taxation whereas nearly identical “non-index” options on the exchange traded fund (ETF) tracking the S&P 500 Index (SPY) do not. We find new evidence of asset price consequences to MTM taxation, suggesting that MTM taxation depresses asset prices as investors appear to avoid assets subject to MTM near year-end. Additional analysis suggests this result is driven by tax, rather than administrative, costs of MTM. From a policy perspective, this suggests that 1) MTM taxation has negative, unintended market consequences in the U.S. and 2) U.S. investors will engage in actions to avoid MTM taxation. Both attributes caution policymakers in any attempts to broaden MTM taxation.

Research on the Strategy to Actively Promote Real Estate Tax Reform in China

Since the abolition of the welfare housing distribution policy and the implementation of the monetary reform of the housing system in 1998, there has even been a bubble phenomenon despite the rapid development of the Chinese real estate market. However, considering that the reform of real estate tax will affect the whole system, and there are still various disputes about real estate tax in society, the Chinese government is very slow in real estate tax reform. Given this, under the background that the State Council has been authorized by the Standing Committee of the National People’s Congress to pilot real estate tax reform, it is still necessary to explore the legitimacy of China’s real estate tax reform promotion. In general, under the background of solidly promoting common prosperity, resolutely implementing the policy of “housing to live without speculation,” and promoting the stable and healthy development of the real estate market, coupled with the fact that the real estate market has already seen a severe bubble phenomenon. China’s active promotion of real estate tax reform has a solid theoretical and practical basis and has urgency and feasibility.

Specifics of Real Estate Taxation in the Czech and Slovak Republics

This article is focused on the real estate tax in the Czech and Slovak Republics. Different approaches to the tax are applied (determination of construction elements and tax collection method) in both states, hence the reason for conducting research in these states. Many researchers deal with real estate taxes from the perspective of municipalities or states. The motivation for this research was finding solutions for real estate tax reform in the Czech Republic from the perspective of taxpayers. 1352 questionnaires were evaluated (839 from the Czech Republic and 513 from the Slovak Republic). The tax justification was reviewed with regard to investing the revenues from real estate tax into improving the life of citizens in the municipality. The questionnaire using was assessed within the descriptive statistics, the Kruskal-Wallis test and the Pearson chi-square test. Based on empirical research, the median real estate tax is lower in the Czech Republic when compared to Slovakia. Nevertheless, the percentage of respondents who perceive the tax burden as high is 3.3% higher in the Czech Republic than in Slovakia. The perception of tax justice varies. Respondents in the Czech Republic perceive less improvement in their municipal infrastructure. Conversely, almost half of the respondents from Slovakia mentioned improvements in infrastructure in the municipality. The majority of respondents in both countries knew how collected funds are utilized and what specific projects were carried out in their respective municipalities.

The Research on the Predicament of Further Promoting the Reform of Real Estate Tax

The price of real estate has been rising in recent years in our country, and the proportion of the consumption of urban households in housing investment gradually increases in the proportion of disposable income, which has affected the consumption of the urban residents. And at the same time, the real estate markets gradually become the markets of investment and hype. The high housing prices also contributed to the social gap between the rich and the poor. Therefore, the real estate tax reform is particularly important. However, since 2010, our country has put forward the reform of property tax, but the effect of the property tax reform practice is limited. So this article will discuss the existing problems in the process of further promoting the reform of real estate tax in China, such as the legislation of the reform of real estate tax, the coordination and consideration of the reform of real estate tax under the huge differences in housing prices, and the real estate information registration system in order to comb through to the existing problems, find the barriers and difficulties in further promoting the reform of the property tax, which has positive significance to further promoting the reform of the property tax.

The Impact of the Training Set Size on the Classification of Real Estate with an Increased Fiscal Burden

Abstract The introduction of an ad valorem tax can lead to an increase in the tax burden on real estate. There are concerns that this increase will be large and widespread. Before undertaking any actual actions related to the real estate tax reform, pilot studies and statistical analyses need to be conducted in order to verify the validity of those concerns and other aspects regarding the replacement of a real estate tax, agricultural tax and forest tax with an ad valorem tax. The article presents results of research on the effectiveness of the classification of real estate into a group at risk of an increase of tax burden with the use of the k-nearest neighbors method. The main focus was to determine the size of a real estate set (training data set) on the basis of which classification is conducted, as well as on the efficiency of that classification, depending on the size of such data set.

A Historical Investigation on the Legislation of China’s Real Estate Tax

At the second session of the comprehensive deepening of the reform group in 2014, Comrade Xi Jinping stressed that all major reform should be based on the law. In the whole reform process, we should attach great importance to the use of the rule-of-law thinking and method, and strengthen the coordination of relevant legislative work. The problem of real estate tax is a major reform of this kind. First of all, the legislative history of real estate tax is fully understood from a historical perspective. Many problems in today’s legislation can be traced back to the source from the history. So by returning the legislation of real estate tax to thirty years ago, and careful observation of the changes in the legislation of real estate tax during the thirty years, it helps us to understand all the problems today. In this part, it can be divided into two stages, before and after 2011 when Chongqing and Shanghai started pilot legislation of real estate tax. In the former stage, the real estate tax system refers to the tax system of the urban business housing. Since 2011, the real estate tax law has further extended the scope to the private non-operating housing owned by the individuals. This means that the universal property tax will be gradually pushed aside. Secondly, the positive and negative aspects of the pilot real estate tax in Chongqing and Shanghai are thought in depth. It is a little biased that the academic circle focuses on negative factors of the experimental study of real estate tax, and criticizes the real estate tax mainly from the perspective of formal rule of law. Specifically, the positive significance of the pilot real estate tax in Chongqing and Shanghai has both the significance of ice breaking and the paving of the people’s psychology. And the negative factors of the pilot real estate tax in Chongqing and Shanghai also provide a new way of thinking for our future legislation of real estate tax. For example, the central government should adopt the unified legislation, but it may be appropriate to give the provincial governments the discretion in the aspect of partial tax elements. Moreover, we should have an international perspective, take cultural factors into account and study related foreign systems, including related real estate tax in South Korea, Germany and the United States. The comparative study on real estate tax systems with different cultural circle helps us to consider comprehensively in the forthcoming legislation of real estate tax, and make full use of some mature experience based on the national conditions, like real estate tax relief system, in order to conform to the principle of taxation according to the ability to pay. In a word, through the historical observation of real estate tax for thirty years, and focusing on the actual effect of pilot real estate tax in Shanghai and Chongqing since 2011, we have reviewed the experience and lessons of pilot real estate tax in Shanghai and Chongqing from both sides. From the positive and negative sides, we have investigated the value and function of real estate tax in the three aspects, need to promote the real estate tax reform through the rule of law, and consider the relevant authority of the central and local authorities, so that we can successfully promote the real estate tax reform in a relatively short time. In addition, in the concrete promotion of the legislation of real estate tax, we should fully learn from the experience of the United States, Japan, South Korea and other countries, and set up relevant supporting systems, so as to avoid a roundabout way.

The dynamic impact analysis of real estate tax merger on real estate enterprises supply

This paper adopts Vector Auto-regressive model to examine the dynamic influence of real estate tax reform on the enterprises supply from the current three main ideas of real estate tax merger. The result shows that there is not the same effect of enterprises supply by the real estate tax merger. And this effect can not be simply classified as positive or negative. It is sure that the effect is obvious in short term, but is not significant in long term. Therefore, the adjustment using real estate tax to the production behavior of the real estate business is effective in the short term, but is bad in the long term.

Design optimization of real estate tax and effect analysis in China

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.

Effects of Estate Tax Reform On Charitable Giving

This paper examines the effects of estate tax repeal on charitable giving. Using data from a variety of sources, we conclude that outright repeal would reduce giving at death by about $5 billion per year, and giving during life by a similar amount. The resulting decline in giving, $10 billion per year, represents about 5 percent of total giving and is roughly equivalent to annual grant-making by the 110 largest foundations.

Crowding Out: Estate Tax Reform and the Elder Law Policy Agenda

This article examines the estate tax reform provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the context of important issues affecting older Americans. Contrary to policymakers' claims that the estate tax is a major concern for elders, this article shows that only a tiny minority of decedents have any estate tax exposure, and that the recently increased exemption will reduce this group even further. In any case, the estate tax is an issue for nonspouse survivors of an elderly decedent, rather than the elders themselves. Even more significantly, by focusing on estate tax reform, policymakers have ignored numerous issues that are truly more important to older Americans, including prescription drugs, long-term care financing, advance health-care directives, Social Security's earnings test, and undiversified pension plans. After examining each of these issues, the article concludes by suggesting that more attention be paid to issues that affect the medical and financial quality of most elders' lives, rather than the pecuniary interests of a few elders' nonspousal survivors.

The Timing Problem for the Unified Estate and Gift Tax

Massive tax changes in 1976 eliminated the old two-tax system and installed a single, progressive transfer tax on the cumulative total of both lifetime gifts and property owned at death. A dynamic programming model is formulated in order to indicate the continued importance of timing in lifetime transfers for estate planning. Heuristic guidelines are provided because the new law does not nullify the appropriateness of lifetime gifts as a major estate planning function. Introduction The estate and gift tax reform in 1976 increased the complexity of estate planning, and this article provides a brief summary of the present law. A dynamic programming model is formulated in order to provide an understanding of the timing problems for the new unified estate and gift tax, to identify the important variables in the problem, and to develop some rules of thumb for practitioners. Overall, fewer estates will be taxed as a result of the massive gift and estate tax changes incorporated in the Tax Reform Act of 1976. Although little additional revenue is expected from these changes, the importance of the choice between making living gifts and testamentary transfers has been reduced as a result of the unified rate schedule. The marginal tax rates on gross gifts (not in contemplation of death), however, are still lower than the marginal tax rates on estates. Bagley and South I lI indicate that gift taxes affect the amount of wealth remaining. Their conclusion still holds under current law (that is, a $1 gift decreases a taxable estate by the amount of the gift tax paid). If the individual does not make the $1 gift, his or her taxable estate will be larger by the gift tax payable than if the gift had been made. Thus, the marginal tax rates for gifts require adjustment of the tax table rates. The type of property to give becomes more important in certain situations because of the elimination of the step-up basis for income tax purposes of Richard Rivers, D.B.A. and C.P.A. (Texas), is an assistant professor at Southern Illinois UniversityCarbondale. D. Larry Crumbley, C.P.A., is professor of accounting at Texas A&M University. A Ph.D., he has authored eight books, including Estate Planning After the 1976 Tax Reform, published by the American Management Association. He has published more than one hundred articles in professional journals and is currently editor of The Oil and Gas Tax Quarterly and a member of the editorial board of the Accounting Review.

Beyond Estate and Gift Tax Reform: Including Gifts and Bequests in Income

Beyond Estate and Gift Tax Reform: Including Gifts and Bequests in Income