Will Real Estate Taxes Lower Home Prices? No.

Background: RE Tax Comes in 2017! Don't Start Rumors, RE Tax Is Far Off!

The article starts off acknowledging there's some debate about when taxes may land, but goes on to say those hoping for taxes to drive down home prices may be disappointed:
Many buyers do not look to the introduction of real estate taxes can reduce the price, the principle is to increase the cost of ownership, forcing real estate speculators who quit in order to squeeze housing estate bubble . But in fact very difficult to achieve this desire, Rates Chinese first-tier cities and some second-tier cities have been difficult to attract investors to the high, investors less and less. Tier cities house in short supply, the introduction of real estate tax increase holding costs actually possible to have higher house prices, after all, depends on the supply of goods or as a house, all the increased costs in the supply and demand aspects of trading practices and are conducive to lower prices. CPPCC National Committee member, Tsinghua University professor , David said the relationship between housing prices and real estate taxes is minimal, which in 2015 was the CPPCC proposal concerns real estate tax.

Opposition believe property tax, real estate tax increase of government power, government transfer payments, it is difficult to avoid inefficiency, corruption, all to expand government power, increasing the tax act should be vigilant. But the government always tax, total public construction to be carried out, public services, education, health, transport, security and order, and so inevitably come forward by the government, will have to collect taxes.
Based on the large deductions that will be available to start, it sounds like the real impact of real estate tax will be to make luxury homes more exclusive by driving up the cost of ownership.

iFeng: 通过房地产税降房价 这个愿望能实现吗?

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