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Analysis of the existing basic situation of China real estate tax system and application of the ability to pay principle

Author(s): Jue Wang

China real estate has gained unprecedented rapid development with the accelerated process of market economic system. On the one hand, with the development of urbanization, the real estate boom has brought rapid growthto the national economy. But in order to solve the big problemsand pressures existing in the real estate market, there is new requirement for China real estate tax system as real estate tax system isthe most importantmeans that are frequently usedin the real estate regulation. The ability to pay principle originated in economics, whichplays a very good role on measures of tax system. Its basic significance is to levy taxesbased on the ability of the taxpayers. Its basic principle status in the property tax system in Chinais analyzed. In this study, it begins from the concept and theoretical basis of the real estate tax system and theability to pay principle, then analyzes the basic situation of the real estate tax system in China, discusses the existing problems in and development trend of China real estate tax system, and puts forwardsome countermeasures. The study also discusseshow to solve the current problems in China real estate tax system from the principles of how to use theability to pay principle. It also analyzes how to combine the real estate tax system and the ability to pay principle to makethe real estate tax system better meet the needsof the rapid development of China. Based on these contents, it also proposes some suggestionsfor the real estate tax reform in China.

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