"Tax reform? And still to raise taxes? "Recently, this issue has attracted widespread attention on the whole network, why is this happening?
Generally speaking, there are two main sources of fiscal revenue, one is to set up enterprises and increase investment, and the other is "land transfer", in other words, it depends on the income from land sales.
However, in recent years, with the development of the times, China's land sales income has been gradually declining, and there have been many cases where land can be sold but no one buys it, and some people buy but cannot sell it.
Among them, there are proposals to levy a tax on the rich, but it remains to be seen whether it is really necessary to change the structure of fiscal revenue through a tax on the rich.
1. The phenomenon and reasons for the decline in land sales income
Since the beginning of the 21st century, with the acceleration of urbanization and the vigorous development of the real estate market, the income from land transfer has grown rapidly, and has become an important source of local government revenue.
However, in recent years, this source of income has begun to show a downward trend, and the underlying causes are complex and multifaceted.
The overall cooling of the property market is one of the main reasons for the decline in land transfer income, with the government's stricter control measures on housing prices and the natural decline in market demand, developers' interest in new land has weakened significantly.
This change in attitude has gradually turned the land auction market from the previous hot to cold, and the activity of land transactions is much less than before.
Moreover, the scarcity of land resources is also one of the important reasons for the decline in land sales income.
With the continuous advancement of urbanization, the land resources available for development around the city are decreasing, which not only limits the supply of land, but also makes the cost of land rise, further inhibiting the willingness of developers to acquire land.
Due to the limitations of land resources and the need for urban expansion, an imbalance between supply and demand has formed, which is difficult to fundamentally change in the short term.
In addition, in order to curb the rapid rise of housing prices, the government has also introduced a series of housing purchase policy measures, although the implementation of these policies has indeed stabilized the real estate market to a certain extent, but it has also directly affected the income from land sales.
In addition, as China's economic development enters a new normal, economic restructuring and urbanization have also led to changes in land use patterns, which no longer rely on land sales to support economic growth.
Coupled with the Chinese government's urbanization strategy, which has accelerated the urbanization process, this means that a large amount of land is used for urban construction and infrastructure construction, rather than income from land sales, which is also an important reason for the decline in land sales income.
Finally, the state has been increasing the supervision and regulation of land transfer fees, and local governments are facing more restrictions and scrutiny in the process of land transfer.
This change in the policy environment has also limited the ability of local governments to obtain fiscal revenue through land sales, and has also prompted local governments to be more prudent in their land transfer strategies, resulting in a decrease in land sales revenue.
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2. The impact of the decline in income from land sales
Because land sales have always been one of the important pillars of local government revenues, the decline in land sales revenues has had a profound impact on the economic and fiscal situation.
In addition to daily expenses, most of the government tax revenue is used to support infrastructure construction, improve social welfare, improve public services and other aspects of people's livelihood.
So, as the income from land sales has dwindled, this dependence has turned into a heavy financial burden.
Especially in the context of tight financial resources, local governments may have to reduce investment in areas of livelihood, which will limit the situation where they have large infrastructure projects, such as the construction of roads, bridges and public transport systems.
In addition, it has affected the ability of local governments to maintain and improve public services, including in areas such as education, health care, and public safety.
The uneven distribution of public services not only affects the quality of life of current residents, but also may have long-term adverse effects on future demographic structure and socio-economic development.
In addition, the decline in land sales income is not only a simple financial problem.
The most direct is the frontal impact on real estate developers.
As land revenues decline, developers' capital chains may be under pressure, resulting in them being unable to purchase new land, and this investment curtailment may lead to the postponement or cancellation of new projects.
It also has a profound impact on the real estate industry and related industry chains, which could trigger a series of ripple effects, most directly in the form of a reduction in employment opportunities in the construction industry.
In particular, construction, decoration, home furnishing and other industries, which are closely related to the real estate market, may face greater employment pressure.
In the long run, this reduction in employment may lead to a decrease in spending power, and when people lose their jobs or have a decrease in income, their spending power will also decrease accordingly, and demand will decrease.
Correspondingly, according to Western economic research theories, consumption is one of the important driving forces of the market economy.
If the consumption capacity declines, the market demand will also decrease accordingly, which will affect the production and sales of enterprises, and then affect the operation of the entire market economy.
Third, the key to changing the situation is to levy a tax on the rich?
In order to increase revenue without affecting the market economy, local governments need to actively look for various ways to broaden their strategic options, so seeking new ideas for tax reform has become the primary choice.
By reforming the tax system, we can not only enhance the fiscal stability of the government, but also optimize the structure of income distribution at a broader level, thereby promoting social fairness and justice.
However, tax reform is a complex and systematic process, which requires comprehensive consideration of the fairness, efficiency and feasibility of tax policies, as well as the economic and social impacts, such as:
At the same time, it is also necessary to strengthen tax collection and law enforcement, prevent the occurrence of tax evasion and tax avoidance, and ensure the effective collection and use of taxes.
Among the many issues of tax reform, the means of imposing taxes on the rich have attracted special attention, which is the tax reform policy for high-income groups, with the aim of increasing fiscal revenue and narrowing the gap between the rich and the poor by imposing higher taxes on the rich, but in the final analysis, is this feasible?
1. Feasibility of tax collection for the rich
The feasibility of the tax on the rich is the primary issue in the implementation of this tax policy, and the determination of the tax base is the basis for the implementation of the tax on the rich. This requires a clear definition of the criteria and scope of high income to ensure that tax policies are targeted and fair.
2. The way in which the tax is levied and collected by the wealthy
The way in which taxes on the wealthy are levied also needs to be carefully considered, and one common way is to adopt a gradual tax rate, which increases gradually as the income level increases.
This ensures that the high-income group bears more of the tax burden, thus achieving the purpose of wealth redistribution.
However, how do you determine a reasonable level of tax rate?
It is an issue that needs to be studied and weighed in depth to take into account the increase in fiscal revenue and avoid excessive pressure on high-income groups.
Another reason is that the wealthy are often entrepreneurs and investors, and their wealth and capital play an important role in economic development and innovation.
Therefore, when taxing the wealthy, it is necessary to weigh the increase in tax revenue and the impact on economic vitality to ensure the long-term sustainability of tax policy and the stable development of the economy.
3. Controversy over taxes on the rich
However, there are two sides to everything, just like a coin, there are two sides, so the collection of taxes on the rich is also inevitable, which is two-sided.
Proponents argue that this policy would help increase government revenues, ease fiscal pressures, and promote social equity.
By taxing high-income groups, the gap between the rich and the poor can be effectively reduced and social cohesion and stability can be enhanced.
In addition, it is also believed that the tax on the rich can also motivate high-income people to participate more in social welfare undertakings, thereby promoting the progress of society as a whole.
Opponents, however, are concerned that taxes on the rich could have a negative impact on the economy.
They believe that high-income people play an important role in economic activities, and excessive taxes may lead to capital outflows, reduce investment and consumption, and thus affect the healthy development of the economy.
In addition, the difficulty of collecting and administering is also a concern for opponents, who fear that it could lead to the emergence of tax evasion and avoidance.
Because the wealthy tend to have more financial resources and tax circumvention means, strict regulatory mechanisms and effective enforcement tools are needed to ensure the effective collection and enforcement of taxes on the wealthy.
Of course, in addition to taxing the rich, there are other ways to promote wealth redistribution and social equity.
For example, it is possible to strengthen the regulation of sources of wealth, combat corruption and illegal economic activities, and prevent the concentration of wealth and unfair competition.
However, it should be noted that the simple taxation of the rich based on the country's finances will not solve the problem of wealth disparity and social inequality alone, which requires comprehensive policy measures and long-term efforts.
conclusion
All in all, the decline in China's land sales revenue has brought huge challenges to local government finances, and tax reform has naturally become an important way to alleviate fiscal pressures.
As a tax policy targeting high-income groups, the tax on the rich has the potential to increase fiscal revenue and promote social equity.
However, the actual implementation of the tax on the rich faces many challenges, and it is necessary to carry out scientific and reasonable design in the determination of the tax base, the setting of tax rates and the collection and management mechanism.
Only by making a breakthrough in policy design and implementation can the tax on the rich truly play its due role, promote the smooth progress of tax reform, and achieve sustainable growth of fiscal revenue and social harmony and stability.
References:
The crisis escalates! China's land sales revenue is declining? Is tax reform near? Do you want to tax the rich? 2024-06-24 23:48 - Sakura Wolf Finance
https://www.toutiao.com/article/7384061549243040282/?channel=&source=search_tab
Who will fill the gap in local finance 2022-02-18 22:35--The Economic Observer
https://mp.weixin.qq.com/s/u1w7Au2ZIhVn-yTBwrnkEw