Core Tip: It is said that the Ministry of Finance recently held seminar on the reform of local taxes, the person said that as part of the local tax reform, property tax pilot will be launched in 2012. The promotion of real estate taxes, in fact, can not be understood as an important measure to suppress prices, but to reconstruct a set of more reasonable mechanism to promote the stable development of real estate to stabilize the economy.
It is said that the Ministry of Finance recently held seminar on the reform of local taxes, the person said that as part of the local tax reform, property tax pilot will be launched in 2012. The promotion of real estate taxes, in fact, can not be understood as an important measure to suppress prices, but to reconstruct a set of more reasonable mechanism to promote the stable development of real estate to stabilize the economy.
First, the stability of a consensus
In fact, we have repeatedly stressed that the current management of real estate control not to relax, not to suppress prices, this produced a certain amount of misreading the market. The main purpose of regulation is to stabilize housing prices rose too fast, thus avoiding the need to introduce more stringent control measures, leading to wide fluctuations in the real estate market, we can say is the true meaning and content of central policies.
Such as the National Political Consultative Conference Li, deputy director of the Economic Commission for water before attending the China International Economic and Exchange Center's "Economic month on", said the current real estate control not collapse, expect the Government to the idea of housing prices down substantially biased. China's real estate market, the policy management system design, including property taxes, the basic starting point and final destination must be the protection of the most vital interests of the majority of the people, not give you a general increase in burden. And Jia Kang, director of the Institute of Fiscal Science, has also believe that to maintain links in the real estate property tax, though not in a long time to reduce the surface morphology of prices, but housing demand will be even less performance of the overall size of the bubble The overall price performance is more steady, more effectively reduce the negative price effects of fluctuations and the impact on social life.
For the first-line cities, up to 10 times more than the price earnings ratio is not low already, and if they continue out of control, may cause prices that are more difficult to deal with the problem. But prices are not high for most second-tier cities, such as excessive blow rates, and may lead to accidental injury of urbanization.
Second, more concerned with the central investment in heavy volume
From the perspective of economic stability, stability in prices based on the heavy volume of real estate investment, management is most concerned about. Tone in the current policy, once the market is expected to stabilize, then the recovery of investments and transactions may become reality.
On both the local government, real estate developers and the central government's point of view, a stable price level and on the basis of the heavy volume, are more acceptable outcomes. However, once housing prices out of control up or down, then the sustainability of such a heavy volume would be questioned, but is not conducive to the healthy operation of the whole.
Therefore, the real estate market regulation is not thought out, which is essentially not meaningful.
Third, the real estate stability is conducive to the economic restructuring
Real estate development is conducive to the stability of economic restructuring, rather than by the public hope the price plummeted.
First of all, this is because it is in the heart of the cyclical position of the industry, real estate, economic development on the current status and important role. The excessive volatility of the real estate industry, they may cause the entire economy has been a great shock.
Secondly, the real estate become entangled interests of all parties, a situation that is acceptable to all parties is stable, while price rises and falls can lead to extreme interests of the game.
Finally, the long term, stable real estate industry is conducive to a balanced industrial structure adjustment, resource allocation system to operate more effectively, contribute to the progressive development of the industry to promote the other.